Indian shares set for muted start on oil caution

Indian shares were set to open little changed on Tuesday as firmer crude oil prices curbed risk appetite, offsetting support from stronger corporate earnings and renewed foreign ​buying.

GIFT Nifty futures were at 24,614 points, as of 7:49 a.m. IST, ‌indicating a muted start for the Nifty 50, which closed at 24,583.80 on Monday.

Oil prices steadied after rising 5% on Monday to a one-week high of $87.7 a barrel, as hopes for a ​U.S.-Iran peace agreement faded.

The two countries traded demands over compensation. Tehran said Washington ​must lift sanctions and meet several other conditions before the Strait of ⁠Hormuz could reopen, while U.S. President Donald Trump said Iran must compensate for “all of ​the people that they have killed and gravely wounded.”

Higher crude oil prices pose a particular ​challenge for India, the world’s third-largest oil importer and consumer, as they could worsen the country’s import bill, fuel inflation and pressure corporate margins.

MSCI’s broadest index of Asia-Pacific shares outside Japan was subdued, ​swinging between gains and losses, and was last up 0.2%.

Markets have remained muted over ​the last four sessions as uncertainty surrounding the Strait of Hormuz tempered risk appetite, though upbeat corporate ‌earnings ⁠and renewed foreign inflows lent some support to broader sentiment.

Foreign portfolio investors have purchased Indian stocks worth about $1.5 billion so far in August, extending buying after turning net purchasers in July following four consecutive months of selling.

Adani Group stocks may gain after a ​U.S. judge dismissed criminal charges ​against founder and Chairman ⁠Gautam Adani, while expressing concern over the Justice Department’s decision to drop the fraud and bribery case.

BSE will also be in ​focus after the National Stock Exchange of India said it would replace ​Wipro in ⁠the benchmark Nifty 50, effective September 30.