Indian shares seen lower as yields, oil rise on Trump`s Iran threat
Indian shares are likely to open lower on Wednesday, tracking broader Asian markets, as bond yields and oil prices remain elevated following U.S. President Donald Trump's renewed threats to strike Iran.
GIFT Nifty futures were at 23,417, as of 7:13 a.m. IST, indicating that benchmark Nifty 50 will open below 23,618, the closing level on Tuesday.
Trump said that the U.S. may need to strike Iran again and that he had been an hour away from ordering an attack before postponing it.
Asian markets fell 0.6%, while 30-year U.S. treasury yields rose to their highest levels since 2007. [MKTS/GLOB]
The Iran war, which began in late February, has pushed energy prices higher and rattled investors globally. Oil-importing countries such as India have witnessed aggressive foreign selling in equities due to concerns over the impact of high oil prices on the economy and inflation.
Foreign investors sold Indian shares worth 24.58 billion rupees ($254.63 million) on Tuesday, per provisional data. They have offloaded $23 billion worth of shares so far this year, already surpassing record annual outflow seen last year.
Apart from global macroeconomic developments, investors will also react to a slew of quarterly earnings.
STOCKS TO WATCH
** Aluminium company Hindalco's U.S.-based subsidiary Novelis reports higher operating profit, and says Oswego plant to restart in the coming weeks.
** Zee Entertainment Enterprises reports a quarterly loss, as clients tighten advertising budgets following the Middle East crisis, while higher expenses pressured the broadcaster's margins.
** State-run oil marketing company BPCL posts higher adjusted profit for March quarter, helped by steady fuel demand.
($1 = 96.5325 Indian rupees)
