Indian shares may open lower on fresh Mideast escalation, US inflation
Indian shares are likely to open lower on Thursday, as a fresh escalation in the Middle East conflict and a sharp jump in U.S. inflation readings have triggered a risk-off sentiment across global equities.
The United States launched new strikes against multiple targets in Iran, the U.S. military said on Wednesday, as President Donald Trump vowed even more attacks if no peace deal is secured.
The escalation pushed Brent crude futures up 1.1% to $94 per barrel, while Asian stocks dropped 0.4%. [MKTS/GLOB]
GIFT Nifty futures were trading at 23,069 as of 7:43 a.m. IST, indicating that the benchmark Nifty 50 would open below Wednesday's close of 23,214.95.
The Iran war, now in its fourth month, has raised energy prices and triggered concerns over its impact on growth and inflation in India, the world's third-largest oil importer.
Data released overnight showed that U.S. consumer inflation increased at its fastest pace in three years in May, boosted by surging energy prices amid the Middle East conflict, giving the Federal Reserve more ammunition to keep interest rates unchanged into 2027.
Higher interest rates in the U.S. tend to make emerging market equities less attractive for foreign portfolio investors (FPIs).
FPIs sold Indian shares worth 21.25 billion rupees ($223.06 million) on Wednesday, marking a ninth straight session of outflows. They have offloaded a record $30.4 billion worth of shares in India so far this year.
STOCKS TO WATCH
** Television broadcaster Zee Entertainment says it would raise 23 billion rupees ($241.43 million) to fund its strategic and business initiatives.
** Abu Dhabi Investment Authority's unit plans to sell 2.3% stake in eyewear retailer Lenskart Solutions for 19.44 billion rupees ($204 million) through a block deal, multiple news reports said.
** Vascon Engineers gets order worth 3.47 billion rupees for redevelopment of RBI quarters in Guwahati
($1 = 95.2650 Indian rupees)
