Indian shares eye muted start as oil climbs on intensifying Mideast tensions

Indian shares were likely to open little changed on Wednesday as sentiment remained subdued amid fresh escalation in tensions in the Middle East ​and a resulting spike in Brent crude toward $100 per barrel. The Middle ‌East war intensified on Tuesday with Houthis in Yemen launching strikes on several Saudi cities, further embroiling a US ally in the conflict, while US forces hit multiple Iranian ​oil tankers and Iran struck a US base in Jordan. Brent crude futures ​jumped 1. 5% to $99. 5 per barrel. Higher oil prices threaten to ⁠widen the trade deficit, fuel inflation, and weigh on growth in India, ​which imports most of its energy needs. GIFT Nifty futures were at 23, 652. 5 points ​as of 7: 46 a. m. IST, indicating a muted start for the Nifty 50 index, which closed at 23, 635. 1 on Tuesday. The 50-stock index and BSE Sensex have lost 2. 2% each over ​the past seven sessions, closing lower in six of them. They closed ​at their lowest levels since June 12 on Tuesday. Investors globally remain focused on US inflation ‌data ⁠expected later this week, a key factor in determining the Federal Reserve’s rate action next week. Higher US interest rates are negative for emerging market equities, as they could slow foreign flows while the dollar and Treasuries become more attractive ​under tighter monetary ​policy. Foreign investors net ⁠sold Indian shares worth 1. 23 billion rupees ($12. 97 million) on Tuesday, as per provisional data. They have offloaded $1. 33 billion worth ​of shares so far in September.

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