Indian shares set to open higher on weaker oil amid Mideast hopes
- GIFT Nifty futures were trading at 23,483
Indian shares are set to open higher, buoyed by easing Mideast tensions and falling oil prices following Trump's announcement regarding Iran, despite recent record foreign outflows.
- Easing Mideast tensions and falling oil prices.
- Indian market's expected higher open and inflation relief.
- Record foreign portfolio investor outflows.
Indian shares are set to open higher on Friday, tracking gains in other Asian markets, as oil prices fell after U.S. President Donald Trump cancelled plans to strike Iran citing progress in talks.
GIFT Nifty futures were trading at 23,483 as of 7:47 a.m. IST, indicating that the benchmark Nifty 50 would open 1.4% above Thursday’s close of 23,161.6.
Other Asian stock markets jumped 3.1%. Brent crude futures slipped below $90 a barrel, tempering inflation fears.
Trump said on Thursday the United States and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping. However, Iran said it had not reached a final decision on an agreement.
“Easing geopolitical tensions have provided significant relief to energy markets, with crude prices falling sharply, which is positive for India,” said R Ponmudi, chief executive officer at Enrich Money.
“While a formal agreement is still pending, market participants will closely watch whether the easing geopolitical backdrop can trigger a meaningful turnaround in foreign portfolio flows.”
The Nifty and Sensex have fallen 8% and 9.2%, respectively, since the Iran war began in late February, as higher oil prices stoked concerns over inflation, economic slowdown and corporate profitability in the world’s third-largest crude importer, while triggering record foreign outflows.
Foreign portfolio investors sold 19.87 billion rupees ($207.52 million) worth of domestic equities on Thursday, taking the year-to-date outflows to a record $30.6 billion.