Indian shares likely to consolidate after foreign inflow-driven rally

Indian shares are expected to open little changed on Thursday, as benchmark indexes look to consolidate after a sharp rally driven by sustained foreign ​fund inflows, lower crude oil prices and a cooling global AI trade.

GIFT ‌Nifty futures were at 25,270 as of 8:00 a.m. IST, indicating a muted start for the benchmark Nifty 50, which ended at a more-than-eight-month closing high of 25,255.05 on Wednesday.

Foreign ​portfolio investors bought 125.63 billion rupees ($1.34 billion) worth of Indian shares on ​Wednesday, provisional data showed. They have net bought $6.43 billion of ⁠shares in November, already their biggest monthly purchase since September 2024.

The robust inflows ​have pushed the Nifty 50 and Sensex indexes up 9.6% and 10%, respectively, so ​far in November.

The rally marks a reversal for Indian equities, which have lagged their emerging-market peers over the past two years due to elevated oil prices and limited exposure to ​the global AI-driven market rally.

Brent crude futures fell more than 1% to $91.8 per ​barrel on hopes for progress in peace talks over the Middle East and the Russia-Ukraine wars.

“Lower ‌crude ⁠oil prices continue to provide a supportive backdrop, but the US 10-year Treasury yield hovering near 4.99%, coupled with the market’s extended rally, may restrict immediate upside,” said Hariselvan Radhakrishnan, founder and CEO of HST Wealth.

MSCI’s broadest index of Asia-Pacific ​shares outside Japan ​dipped 0.1%, weighed ⁠down by shares in Hong Kong.

Shares of Adani Green Energy, Coforge, Life Insurance Corporation of India, and Meesho will be ​in focus after index provider MSCI added them to MSCI India ​index. It ⁠removed PI Industries from the index.