IGI Logo

Indian shares were likely to open little changed on Tuesday, after hitting six-week lows in the previous session, as the broader market undertone remained subdued due to rising crude prices on risks of a widening Middle East conflict.

Iran threatened that any new attacks on Tehran will be met with a retaliation on U.S. assets, warning that energy infrastructure across the Gulf, including U.S. oil and gas interests, was vulnerable.

GIFT Nifty futures were at 23,800 points as of 7:40 a.m. IST, indicating a muted start for the Nifty 50 index, which closed at 23,779.15 on Monday.

Brent crude futures hovered around $97 per barrel. [O/R] India is particularly vulnerable to higher fuel prices as it imports about 85% of its crude requirements.

The 50-stock index and Sensex closed at their lowest levels in six weeks on Monday, pressured by IT stocks, as escalating tensions in the Middle East and rising expectations of a U.S. rate hike dented risk sentiment.

"The market's next major focus is Friday evening's U.S. inflation report, with the reading expected to set the tone for expectations ahead of the Federal Reserve's September 16 decision," said Hariselvan Radhakrishnan, founder and CEO of research analysis firm HST Wealth.

Higher interest rates in the U.S. are a negative for emerging market equities as they could slow foreign flows as the dollar and Treasuries become more attractive under tighter monetary policy.

Foreign investors net bought Indian shares worth 2.8 billion rupees ($29.6 million) on Monday, as per provisional data, after three consecutive sessions of selling.

STOCKS TO WATCH

** Temasek-backed logistics firm Shiprocket posts narrower first-quarter loss, boosted by its core shipping business

** Neuland Laboratories approves 1.26 billion rupees capex for purchase of 134 acres of land in Andhra Pradesh state

** Deepa Jeweller and Rays of Belief due to get listed on stock exchanges on Tuesday after initial public offerings last week

($1 = 94.4850 Indian rupees)