Indian shares set to open lower as US-Iran tensions lift oil prices
- GIFT Nifty futures were trading at 24,235
Indian shares were set to open lower on Wednesday, as renewed U.S.-Iran tensions hit global risk appetite and lifted crude oil prices, a key risk for the world’s third-largest oil importer.
GIFT Nifty futures were trading at 24,235 as of 8:00 a.m. IST, signalling that the Nifty 50 could open below Tuesday’s close of 24,398.7.
Asian markets fell after an overnight drop on Wall Street, while Brent crude rose 2% to about $76 a barrel, extending a 3% gain from the previous session, after the U.S. military launched a series of strikes against Iran.
Washington said Tehran had attacked three commercial vessels in the Strait of Hormuz, a vital route for global oil shipments.
The flare-up raised fresh concerns about regional stability and possible supply disruption.
Higher oil prices are a headwind for oil-importing countries such as India because they can lift the import bill, fuel inflation, slow growth and squeeze company margins.
The Nifty 50 and the Sensex snapped a four-session winning streak on Tuesday, as investors booked profits after a rally driven by optimism over lower crude prices following a preliminary U.S.-Iran peace deal.
The latest flare-up could dent investor sentiment further, trigger a risk-off move and prompt additional profit-taking, two analysts said.
Technology stocks will also be in focus after a Reuters report said Chinese AI startup DeepSeek was developing its own chip, potentially reducing reliance on major global chipmakers.
The Nifty IT index, up 6.2% so far in July, will be watched ahead of Tata Consultancy Services’ quarterly results on Thursday.
Foreign institutional investors bought Indian shares worth 3.93 billion rupees ($41.4 million) on Tuesday, while domestic institutional investors sold shares worth 3.83 billion rupees.
Comments