Indian shares likely to rise as oil comes off; BSE joins Nifty
Indian shares were expected to open marginally higher on Wednesday as signs of recovering exports from the Middle East eased crude oil prices, even as the absence of a peace deal between the US and Iran kept investors on tenterhooks.
GIFT Nifty futures were at 22,834 points as of 7:46 a.m. IST, indicating a positive start for the benchmark Nifty 50 index, which closed at 22,716.2 on Tuesday.
The National Stock Exchange of India's semi-annual index review comes into effect on Wednesday, and investors will closely monitor whether the closing auction session can absorb higher inflows.
Exchange operator BSE is set to replace IT company Wipro in the Nifty as part of the review.
Changes to ?the 50-stock index are closely watched as passive funds with about $97 ?billion of assets under management track the index.
Indian benchmarks have fallen about 5.8% in September, and are on course for their worst drop since March.
Brent crude futures rose 1.1% to $103.7 per barrel, after dropping 2.6% in the previous session. [O/R]
The yield on rate-sensitive US 2-year Treasuries fell as traders trimmed their October rate hike expectations after a Federal Reserve official said he thought the central bank has time to weigh data before deciding when to hike rates again.
Foreign investors net sold Indian shares worth 99.8 billion rupees ($1.04 billion) on Tuesday, marking their biggest outflow in about four months. They have offloaded $2.7 billion of shares in September, taking the year-to-date selling to $26.75 billion.
STOCKS TO WATCH
** Power Mech Projects gets an order worth 5.49 billion rupees from Moxie Power Generation of Adani Group
** Industrial pumps and valves manufacturer KSB gets an export order worth $12.4 million for supply of boiler feed pump package
** Four companies - Elevate Campuses, ArMee Infotech, Swastika Infra and Adroit Industries (India) - will debut
($1 = 95.9800 Indian rupees)
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