Indian shares likely to open higher; caution ahead of new Iran sanctions

Indian shares were expected to open marginally higher on Monday, following two consecutive weekly losses, although sentiment will remain cautious as investors await details of threatened US sanctions ​on Iran later in the session.

GIFT Nifty futures were at 24,378 points, ‌as of 7:47 a.m. IST, indicating a positive start for the benchmark Nifty 50 index, which closed at 24,252 on Friday.

Iran’s foreign minister ​dismissed the threat of new U.S. sanctions as a sign of desperation ⁠on Sunday and said the expected new measures would fail to defeat Tehran.

The nearly ​six-month-old war between the U.S. and Iran has led to a surge in energy prices globally, ​driving inflation fears.

India, which is the third-largest global crude importer, has seen record foreign investor outflows from equities earlier this year, largely due to higher crude prices.

The Nifty 50 and the BSE Sensex shed ​0.5% and 0.6%, respectively, last week, as higher crude oil prices and bond yields due ​to an escalating Middle East war weighed on sentiment. This was their second consecutive week of losses.

“Persistent ‌Middle ⁠East tensions and elevated crude oil prices continue to temper risk appetite,” said Ponmudi R, chief executive officer of Enrich Money.

Brent crude futures were down 2% but remained elevated at $93 per barrel, after a 13% jump in the last two weeks.

Asian markets were flat as investors ​awaited details of ​threatened U.S. sanctions on ⁠Iran and Nvidia results later this week, while the Canadian dollar dipped as a trade war loomed with its southern neighbour.