Indian shares set for muted open as oil tops $91, US-Iran ceasefire expires
- GIFT Nifty futures were at 24,311.50 points
Indian equities are set for a muted opening as the US-Iran ceasefire expiration keeps oil prices elevated, raising inflation concerns for India and leading to a cautious market sentiment.
- Impact of the expiring US-Iran ceasefire on global oil prices.
- India's inflation concerns from sustained higher crude prices.
- Recent performance of benchmark Nifty 50 and Sensex indices.
- Foreign and domestic institutional investor activity.
Indian equities are likely to open largely unchanged on Tuesday, with the temporary US-Iran ceasefire expiring and hopes of a deal to end the conflict fading, keeping oil prices above $91 a barrel.
Iran’s indication that it could adopt a more offensive posture and U.S. President Donald Trump ruling out an extension to the ceasefire arrangement have intensified concerns over potential disruptions to energy supplies.
The prospect of sustained higher crude prices could also rekindle inflation worries for India, the world’s third-largest oil importer.
GIFT Nifty futures were at 24,311.50 points as of 7:33 a.m. IST, indicating a muted start for the benchmark Nifty 50 index, which closed at 24,287.65 on Monday.
The benchmark Nifty 50 has logged losses for five straight sessions, while the Sensex has declined in four of the last five sessions.
They have dropped 1.2% and 1.04%, respectively, over the period.
“With no meaningful progress in resolving the U.S.-Iran conflict and President Trump ruling out an extension of the 60-day temporary ceasefire, domestic markets are set to trade with a cautious bias,” said Ponmudi R, CEO of Enrich Money.
Foreign portfolio investors (FPI) offloaded Indian stocks worth 25.35 billion rupees ($265.17 million) on Monday, while domestic institutional investors (DII) were net buyers, with inflows worth 51.01 billion rupees, according to NSE’s provisional data.