Indian stocks poised for higher open on softer crude, robust foreign buying
- GIFT Nifty futures were at 25,334
Indian shares are poised for a higher open, fueled by a significant drop in crude oil prices and robust foreign fund inflows, following a holiday break and strong market performance.
- Impact of falling crude oil prices on Indian market sentiment.
- Reasons for the substantial increase in foreign portfolio investments.
- Global market reactions to US inflation data and Fed rate hike prospects.
Indian shares were expected to open higher on Wednesday after a holiday break, supported by a sharp drop in crude oil prices and strong foreign fund inflows.
GIFT Nifty futures were at 25,334 as of 7:41 a.m. IST, indicating a positive start for the benchmark Nifty 50, which ended at a more than eight-month closing high of 25,044.65 on Monday. Indian markets were closed on Tuesday for Diwali.
Brent crude futures slid to a two-month low of $89.16 per barrel on Tuesday after US officials played down the need for additional military action against Iran, easing concerns over supply disruptions. Prices were up 0.5% at $92 on Wednesday.
The Nifty 50 and the BSE Sensex have gained nearly 9% so far this month as easing crude oil prices, strong domestic earnings and a selloff in global chipmakers brought foreign portfolio investors (FPIs) back to India.
FPIs have bought Indian shares worth $5.68 billion so far in November, already making their biggest monthly purchase since September 2024.
Meanwhile, US Treasury yields jumped and Wall Street stocks fell overnight after hotter-than-anticipated inflation data boosted chances of a half-percentage-point Federal Reserve interest-rate hike next month.