Key Takeaways
- Indian shares expected to open subdued due to oil price hike.
- US-Iran talks fail to resolve conflict, boosting oil prices.
- Foreign investors net sold shares worth 36.94 billion rupees on Friday.
Indian shares were poised for a subdued opening on Monday, with investors remaining cautious following a week of losses and rising oil prices.
The benchmark Nifty 50 index closed at 23,140.5 on Friday, marking one of its longest weekly losing streaks since 2020, as foreign investors net sold shares worth 36.94 billion rupees.
US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, while Iran maintained that only diplomacy could resolve its conflict with the United States and Israel, leading to a stalemate in talks.
Brent crude futures climbed 1.5% to approximately $106 per barrel, contributing to the overall market sentiment of caution among investors.
Asian markets, including India, saw a slight decline, with the Nifty 50 and BSE Sensex experiencing a seven-day losing streak, losing nearly 6% in total.
India, the world’s third-largest crude importer, remains vulnerable to higher oil prices, which can exacerbate inflation, increase import bills, and negatively impact corporate margins.
Foreign investors have offloaded $1.8 billion of shares in September, with year-to-date selling reaching $25.86 billion, indicating a continued negative sentiment towards the Indian market.
GIFT Nifty futures were trading at 23,111 points as of 7:41 a.m. IST, signaling a muted start for the benchmark index.
