India shares head for negative open as foreign outflows offset oil relief
Indian equities were set for a weak start on Thursday as persistent foreign fund outflows continued to weigh on sentiment, although easing crude oil prices on prospects of US-Iran peace talks provided some relief.
GIFT Nifty futures were at 22,570 points, as of 7:38 a.m. IST, indicating a negative start for the benchmark Nifty 50 index, which closed at 22,620.45 on Wednesday.
Foreign investors sold Indian shares worth 101.48 billion rupees ($1.06 billion) on Wednesday, as per provisional data. They have offloaded about $3.6 billion in the previous five sessions, taking their year-to-date selling to $27.8 billion.
Brent crude futures slipped to around $98 a barrel after Tehran said it had received Washington's response to its latest ceasefire proposal. Days earlier, US President Donald Trump said he had rejected the proposal. [O/R]
The Nifty 50 and BSE Sensex have lost 2.3% and 1.9%, respectively, so far this week and are on track for an eighth consecutive weekly decline.
Indian markets will be closed on Friday for a local holiday.
Stocks have been hammered as the seven-month-old Iran war has driven crude oil prices and global bond yields higher, stoking concerns about inflation and interest rates.
India, world's third-largest crude importer, is vulnerable to higher prices as they can stoke inflation, widen import bill, and drag corporate margins.
Meanwhile, US inflation increased less than expected in August and price pressures were more moderate in the prior month than previously reported, likely reducing the urgency for the Federal Reserve to raise interest rates again in October.
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** Delivery and logistics firm Blue Dart Express to increase prices across domestic portfolio by 9% to 12%, effective January 1
** Aurobindo Pharma says its biopharmaceutical unit launches ADQUEY (difamilast 1%) ointment, a non-steroidal
topical treatment for mild-to-moderate atopic dermatitis, in the US
($1 = 95.9800 Indian rupees)
