Indian shares set to open lower as oil surge weighs on sentiment
- GIFT Nifty futures were trading at 24,119.50 points
India’s stock benchmarks are poised to open lower on Thursday as a surge in oil prices weighed on market sentiment, potentially outweighing stock-specific earnings-led gains.
GIFT Nifty futures were trading at 24,119.50 points, as of 8:11 a.m. IST, indicating that the benchmark Nifty 50 would open below Wednesday’s close of 24,177.65.
Brent crude rose to $120 per barrel after US President Donald Trump spoke with oil companies about measures to mitigate the impact of a possible months-long blockade of Iran’s ports, raising fears of an extended supply disruption.
Higher oil prices raise inflation risks for India, the world’s third-largest crude importer, as well as pressure economic growth and corporate earnings.
Overnight, the US Federal Reserve kept rates on hold as expected, amid intensifying concerns about a rise in inflation due to the Iran war, as markets priced out any cuts in 2026.
A combination of elevated oil prices and cautious monetary signals from central banks is likely to continue to weigh on global sentiment this session, keeping risk appetite subdued, said Hariprasad K, founder of Livelong Wealth.
Other Asian stock markets were down 0.2%.
Both the Nifty and Sensex rose about 0.8% each on Wednesday, helped by stock-specific gains after quarterly earnings and bottom picking after a recent correction.
Both the indexes are up about 8% in April so far, partially rebounding from the more than 11% drop in March.
However, a sustainable recovery will hinge on the US-Iran relation, reversal of record high foreign outflows and an uptick in corporate earnings.
From a domestic perspective, positioning is likely to remain cautious ahead of the long weekend and upcoming state election outcomes on May 4, Hariprasad said.
Among stocks, Bajaj Finance will be in focus after the non-bank lender posted a 22% growth in March-quarter profit.