Indian shares set to open lower as oil surge weighs on sentiment

India’s stock benchmarks are poised to open lower on Thursday as a surge in oil prices weighed on market sentiment, potentially outweighing ​stock-specific earnings-led gains. GIFT Nifty futures were trading at 24, 119. 50 points, ‌as of 8: 11 a. m. IST, indicating that the benchmark Nifty 50 would open below Wednesday’s close of 24, 177. 65. Brent crude rose to $120 per barrel after US President Donald ​Trump spoke with oil companies about measures to mitigate the impact ​of a possible months-long blockade of Iran’s ports, raising fears ⁠of an extended supply disruption. Higher oil prices raise inflation risks for India, ​the world’s third-largest crude importer, as well as pressure economic growth and ​corporate earnings. Overnight, the US Federal Reserve kept rates on hold as expected, amid intensifying concerns about a rise in inflation due to the Iran war, as markets priced ​out any cuts in 2026. A combination of elevated oil prices and cautious ​monetary signals from central banks is likely to continue to weigh on global sentiment ‌this ⁠session, keeping risk appetite subdued, said Hariprasad K, founder of Livelong Wealth. Other Asian stock markets were down 0. 2%. Both the Nifty and Sensex rose about 0. 8% each on Wednesday, helped by stock-specific gains after quarterly earnings and ​bottom picking after ​a recent correction. Both ⁠the indexes are up about 8% in April so far, partially rebounding from the more than 11% drop ​in March. However, a sustainable recovery will hinge on the ​US-Iran ⁠relation, reversal of record high foreign outflows and an uptick in corporate earnings. From a domestic perspective, positioning is likely to remain cautious ahead of the long ⁠weekend ​and upcoming state election outcomes on May 4, ​Hariprasad said. Among stocks, Bajaj Finance will be in focus after the non-bank lender posted a 22% growth ​in March-quarter profit.

Read full story on Business Recorder