Indian shares may open higher, elevated crude prices to weigh
- GIFT Nifty futures were at 24,553 points
Indian shares are expected to open slightly higher, driven by positive earnings and foreign investment, despite concerns over elevated crude oil prices and upcoming US inflation data.
- Rising crude oil prices and market sentiment.
- US inflation data and Federal Reserve rate actions.
- Foreign investor activity in Indian markets.
Indian shares may open marginally higher on Wednesday, supported by positive earnings and foreign buying, though high oil prices and caution ahead of US inflation data are likely to keep investor sentiment in check.
GIFT Nifty futures were at 24,553 points, as of 8:03 a.m. IST, indicating a positive start for the Nifty 50, which closed at 24,471.7 on Tuesday.
The Nifty 50 and the BSE Sensex dropped 0.5% each on Tuesday as investors worried over elevated crude oil prices.
Oil extended gains and Wall Street finished lower on Tuesday as traders grew more pessimistic about a potential deal to bring stability to the Middle East and reopen the Strait of Hormuz.
The United States and Yemen’s Iran-aligned Houthis reported separate attacks on shipping on Tuesday as prospects for ending the Iran war appeared to dim.
Investors were awaiting U.S. consumer and producer inflation data this week that could influence the Federal Reserve’s future rate actions.
Weaker-than-expected jobs data last week had already led investors to pare bets for a near-term Fed rate hike.
Lower US interest rates make emerging markets, such as India, more attractive to foreign investors by weakening the dollar and lowering Treasury yields.
Foreign investors bought shares worth 2.59 billion rupees ($27.14 million) on Tuesday, according to provisional data.
This would be their ninth session of net purchase in the last 10 trading days, indicating the return of foreign investors after a record selloff earlier this year.
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