Key Takeaways
- Indian shares set to open lower due to rising oil prices.
- National Stock Exchange of India's listing in focus, expected modest gain.
- Higher oil prices detrimental to India's import bill and corporate profitability.
Indian shares are anticipated to open lower on Thursday, following a rise in oil prices above $100 a barrel in the previous session.
The surge in oil prices, attributed to comments from Iranian President Masoud Pezeshkian at the UN General Assembly, has intensified concerns over the impact on India's import bill and inflationary pressures.
The market's attention is on the listing of the National Stock Exchange of India (NSE), which is expected to gain 2%-3% in its trading debut, despite slowing derivatives activity.
GIFT Nifty futures were trading at 23,270 points as of 8:02 a.m. IST, indicating a negative start for the benchmark Nifty 50 index, which closed at 23,446.8 on Wednesday.
Brent crude prices hovered around $102.5 a barrel on Thursday, up 4% from the previous session, adding to the pressure on India's economy.
Higher oil prices are expected to trigger some profit-taking in domestic markets following the previous session's gains, according to two traders.
Other Asian markets also fell 0.6%, tracking overnight losses on Wall Street as the benchmark Treasury yield climbed to its highest level since 2007.
The odds of an October rate hike by the Federal Reserve rose to 66% from 53% a day earlier, following data showing US business activity surged to a more than five-year high in September.
Among other stocks, insurers and lenders are in focus after the country's insurance regulator proposed overhauling commission rules to cap payouts, link them to product complexity, and spread life insurers' commissions beyond a policy's first year.
