Indian shares set for muted start as crude remains at elevated levels
- GIFT Nifty futures were at 24,399 points as of 7:24 a.m. IST, indicating a muted start for the benchmark Nifty 50 index, which closed at 24,366 on Friday
Indian shares were expected to start the week on a muted note on Monday, extending the cautious sentiment seen last week, as a lack of progress towards ending the Iran war kept crude oil prices elevated.
GIFT Nifty futures were at 24,399 points as of 7:24 a.m. IST, indicating a muted start for the benchmark Nifty 50 index, which closed at 24,366 on Friday.
Iran called on the U.S. to accept defeat on Saturday, while President Donald Trump called Tehran “very evil” and told Americans to prepare for continued high fuel prices as a result of the war.
MSCI’s broader index for Asia-Pacific stocks outside Japan was little changed on Monday, while investors kept a wary eye on oil prices.
Brent crude futures hovered around $89 per barrel, up 0.7% on the day.
India’s benchmark Nifty 50 and the BSE Sensex fell 0.8% and 0.6%, respectively, last week, as lingering uncertainty in the Middle East and elevated crude oil prices tempered risk appetite.
Higher crude prices pose a challenge for India, the world’s third-largest oil importer, as they could worsen the country’s import bill, fuel inflation and pressure corporate margins.
Foreign investors turned buyers of Indian equities on Friday, after three consecutive sessions of selling. They bought shares worth 5.08 billion rupees on a net basis, while domestic institutional investors bought 3.56 billion rupees of shares on a net basis.