Indian shares seen flat as investors assess Iran-US pause, earnings ahead of Fed

Indian shares are set to open flat on Tuesday, after snapping a five-session losing run in the previous session on a slide in ​crude oil prices, as investors weigh a pause in the Middle ‌East strikes ahead of the crucial U. S. Federal Reserve rate decision. GIFT Nifty futures were at 23, 962 as of 8: 04 a. m. IST, indicating the benchmark Nifty 50 could ​open near Monday’s close of 23, 995. 95. Brent crude fell 0. 9% to ​about $87. 6 a barrel, after dropping 8. 7% in the previous session. ⁠U. S. President Donald Trump said on Monday that Washington was having “good talks” ​with Iran and that there was a chance of resolution. Trump, however, said U. S. ​strikes would resume if negotiations failed, while Iran issued similar comments about retaliation, keeping geopolitical risks intact. The volatility in crude prices could influence the Fed’s inflation assessment in ​its rate decision and commentary due on Wednesday. The Fed is expected to ​keep rates unchanged, but expectations of a 25-basis-point hike have increased to 37. 9% from ‌16% ⁠a week ago, according to theCME FedWatch tool. Domestic benchmark indexes rose about 1% each on Monday, paring back some of last week’s losses of 2. 3% and 2. 7% in the Nifty 50 and Sensex, respectively. Domestic institutional investors purchased stocks worth 23. 29 billion ​rupees ($242. 86 million), while ​foreign institutional investor ⁠outflows stood at 16. 88 billion rupees, according to provisional NSE data. Quarterly earnings have also driven stock-specific moves over the past ​two weeks. Bharat Electronics reported a rise in June quarter profit, ​with ⁠brokerages saying that strong execution offset its margin miss. Tata Power posted a rise in first-quarter profit, aided by higher operating earnings and growth in transmission and distribution. Coal India ⁠its ​first-quarter profit view on weak volumes and ​higher costs, while airline operator IndiGo will also be in focus after appointing insider Kiran Thadimarri as chief ​financial officer, effective Tuesday.

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