Indian shares set for muted open as oil strength offsets earnings support

Indian shares were poised to open little changed on Tuesday, with firmer oil prices limiting risk appetite and offsetting support from stronger corporate earnings and renewed foreign buying. GIFT Nifty futures stood at 24,614 at 7:49 a.m. IST, pointing to a subdued start for the Nifty 50 after Monday's close at 24,583.80. Crude steadied after a 5% jump on Monday to a one-week high of $87.7 a barrel as expectations for a U.S.-Iran peace agreement faded, keeping investors focused on the Strait of Hormuz, a vital shipping chokepoint for oil. That matters particularly for India, the world's third-largest oil importer and consumer, because higher crude costs can widen the import bill, lift inflation and squeeze company margins. Regional sentiment was also restrained, with MSCI's broadest Asia-Pacific index outside Japan last up 0.2% after swinging between gains and losses. Domestic markets have stayed muted over the past four sessions as Hormuz-related uncertainty weighed on sentiment, though upbeat earnings and returning foreign portfolio investor buying provided support. Foreign portfolio investors have bought about $1.5 billion of Indian equities so far in August after turning net buyers in July following four straight months of selling. Among individual stocks, Adani Group companies may gain after a U.S. judge dismissed criminal charges against founder and Chairman Gautam Adani while raising concern about the Justice Department's decision to drop the fraud and bribery case. BSE may also draw attention after the National Stock Exchange of India said it would replace Wipro in the benchmark Nifty 50 effective September 30. Stocks in focus include Gland Pharma, which beat quarterly profit expectations on strong Europe and U.S. sales; Zee Entertainment Enterprises, which reported a decline in June-quarter profit on weak advertising sales and rising costs; Bharat Electronics, which secured orders worth 5.41 billion rupees; and Vodafone Idea, which posted a smaller first-quarter loss as average revenue per user improved and more customers moved to higher-value 4G and 5G services.

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