Indian shares set to open higher, breaking losing run, as oil slides
- GIFT Nifty futures were at 23,974.50
Indian shares are set to open higher on Monday after five consecutive sessions of decline, helped by a sharp fall in oil prices after the United States and Iran paused strikes over the weekend.
Investors will also assess stock-specific reactions to key corporate earnings.
GIFT Nifty futures were at 23,974.50 as of 7:59 a.m. IST, indicating the benchmark Nifty 50 could open above Friday’s close of 23,767.45.
The Nifty and Sensex fell 2.3% and 2.7% last week, respectively, dropping in every session.
The selloff was driven by elevated oil prices and weakness in private lenders HDFC Bank and Axis Bank, on concerns over pressure on their net interest margins.
Markets received some relief as Brent crude fell 4.6% to $92 a barrel after Iran said on Sunday that it would halt its attacks as long as the United States did the same.
Lower oil prices are positive for India, the world’s third-largest importer of the key commodity, as they can ease inflation concerns, support economic growth and improve corporate profit margins.
The developments could provide equities with near-term relief ahead of the U.S. Federal Reserve’s rate decision later this week, according to analysts at Enrich Money and Choice Broking.
The Fed is widely expected to leave rates unchanged, although the probability of a 25-basis-point rate hike has risen to 36.3% from 12.8% a week earlier, according to.
Among stocks, food and beverages firm Tata Consumer could gain after beating first-quarter profit expectations on steady consumer demand for its products. The company also said it may raise prices for select products if input-cost volatility persists.
Credit-card firm SBI Card will be in focus after posting higher quarterly profit on a boost in asset quality.
Realtor Lodha Developers reported an uptick in June quarter profit while state-owned lender Bank of Baroda logged a profit drop in the same period.