Indian shares poised to open higher on easing oil; state election results eyed

Indian shares are likely to open higher on Monday, supported by easing oil prices amid some signs of some de-escalation in the Middle East conflict, while results of key ​assembly elections will also be in focus.

GIFT Nifty futures were trading at 24,245.50 ‌points, as of 8:05 a.m. IST, indicating that the benchmark Nifty 50 would open above Thursday’s close of 23,997.55. Indian markets were closed on Friday for a local holiday.

Both the Nifty and the Sensex fell about 0.7% on Thursday, ​while the rupee hit a record low after crude oil prices jumped on fears ​of an escalation in the Iran war.

Those worries have now eased a ⁠bit after US President Donald Trump said the United States would begin an effort to free ​up ships stranded in the Strait of Hormuz.

Trump said that the effort to free up the ​Strait of Hormuz was a “humanitarian gesture” meant only to aid neutral countries that were not involved in the US-Israeli war on Iran.

Tehran said the U.S. had responded to its 14-point proposal for a peace deal through Pakistan and ​that it was reviewing the response, though Trump said it was unlikely to be acceptable.

Brent ​crude, which jumped to a four-year high of $126.41 a barrel last week, has eased to about $108.

Higher oil prices ‌raise inflation ⁠risks for India, the world’s third-largest crude importer, as well as pressure economic growth and corporate earnings.

The results of assembly elections in four Indian states, including Tamil Nadu and West Bengal, and one union territory will be announced during the session.

“Markets may continue to debate more on ​oil versus macro-calculus, while ​giving a brief cheer ⁠for electoral stability,” said analysts led by Sanjeev Prasad of Kotak Institutional Equities.