Indian shares set for positive start as oil prices drop on US-Iran talks
- GIFT Nifty futures were at 24,173.5
Indian shares are set to open higher as crude oil prices dropped below $71/barrel following positive progress in US-Iran talks, a beneficial development for India's oil imports.
- Positive progress in US-Iran indirect talks.
- India's economic benefits from lower crude oil prices.
- Foreign and domestic investor activity in Indian equities.
Indian shares are likely to open higher on Thursday, as crude oil prices dropped below $71 per barrel after Qatar said Iran and the US made “positive progress” in indirect talks that concluded on Wednesday.
GIFT Nifty futures were at 24,173.5, as of 7:40 a.m. IST, indicating the Nifty 50 could open above Wednesday’s closing level of 24,005.85.
Iran and US negotiators spent two days in Doha discussing maritime traffic in the Strait of Hormuz and unfreezing Iran’s funds, two critical issues under the initial agreement, Reuters reported, citing sources.
The next meeting will take place after funeral processions for Iran’s late Supreme Leader Ayatollah Ali Khamenei, who is due to be buried on July 9, Qatar’s Foreign Ministry said.
Signs of progress in peace talks pushed oil prices lower, which is positive for India, as it imports the bulk of its oil requirements.
Meanwhile, caution is likely to persist over foreign flows, as overseas investors remained sellers of Indian equities for a third consecutive session on Wednesday.
FPIs offloaded 11.41 billion rupees ($119.79 million) worth of shares on Wednesday, as per provisional data. On the other hand, domestic institutional investors continued to support the market with inflows worth 31.59 billion rupees.