Indian shares to open lower as Iran war, fund outflows continue to weigh
- GIFT Nifty futures were at 23,245.5
Indian shares are expected to open lower due to persistent Middle East war anxieties, record foreign investor outflows, and concerns over a weak monsoon impacting inflation and economic growth.
- Impact of Middle East conflict on global oil prices.
- Record foreign investor outflows from Indian markets.
- India's weakest monsoon in 11 years and economic impact.
Indian shares are likely to open lower on Tuesday as persistent anxiety around the war in the Middle East and unprecedented foreign outflows pressure markets.
Brent crude futures hovered around $94 per barrel amid stalled peace talks between the U.S. and Iran to resolve the three-month-old war that has pushed energy prices higher, raising inflation concerns.
GIFT Nifty futures were at 23,245.5 as of 7:49 a.m. IST, indicating the benchmark Nifty 50 would open below Monday’s close of 23,382.6. The 50-stock index has shed 2.7% and the BSE Sensex is down 2.9% in the last four sessions.
Foreign investors sold shares worth 39.12 billion rupees ($411.83 million) on Monday, provisional data showed. They have offloaded $26.4 billion worth of shares so far in 2026, already surpassing 2025’s record annual outflow of $18.91 billion.
India’s forecast of the weakest monsoon in 11 years also fuelled concerns over crops, food prices and growth in the world’s fifth-largest economy, which is already starting to battle inflation pressures from the Iran war.
The Reserve Bank of India is expected to keep its key interest rate unchanged on Friday, although a Reuters poll of economists showed that a majority now expect at least one increase by year-end, due to risks connected to high oil prices, weak capital inflows and resulting pressure on the rupee.