Indian shares to fall as widening Iran conflict sends oil higher

Indian shares will open lower on Wednesday, in line with global markets, as oil prices surged to a near-six-week high after the ​US and Iran exchanged strikes overnight, intensifying the Middle East ‌conflict and renewing concerns over inflation.

GIFT Nifty futures were at 24,033.5 points as of 7:38 a.m. IST, indicating a negative start for the Nifty 50 index, which closed ​at 24,055.8 on Tuesday.

Brent crude jumped 2% to $96.6 a barrel, ​triggering a drop in Asian markets and lifting global bond ⁠yields on worries of a near-term U.S. rate hike, which could make ​emerging markets less attractive for global investors.

The US said it had launched a ​series of airstrikes against targets in Iran overnight, prompting an Iranian response in a renewed escalation of tensions in the Middle East.

A prolonged disruption to energy flows through ​the region could keep oil prices elevated, sustain inflationary pressures and ​reinforce expectations of tighter global monetary conditions, weighing on risk assets, two analysts said.

Indian ‌benchmarks Nifty ⁠and Sensex have fallen 0.5% and 0.4%, respectively, over the last two sessions, as global woes overpowered upbeat economic growth data.

Among stocks, Gland Pharma will be in focus after the U.S. drug regulator concluded its inspection at ​the drugmaker’s Visakhapatnam ​facilities with zero ⁠observations.

Coal India is selling a 10% stake in Mahanadi Coalfields through the fully owned subsidiary’s initial public offering, ​draft papers filed with the market regulator showed.

Engineering firm EMS could move ⁠after securing an order worth 2.19 billion rupees ($23 million).

Shares of Ujjivan Small Finance Bank will be watched after the lender said its CEO Sanjeev Nautiyal stepped down ⁠from ​his role due to health issues.

The ​banking regulator approved the appointment of executive director Carol Furtado as interim CEO from September 1.