Indian shares seen opening higher; elevated oil to cap gains
Indian shares are set to open marginally higher on Wednesday, though surging oil prices following reports the U.S. will extend its blockade of Iranian ports and persistent foreign outflows are likely to cap gains.
GIFT Nifty futures were trading at 24,099.50 points as of 8:15 a.m. IST, indicating that the benchmark Nifty 50 would open above Tuesday's close of 23,995.70.
The Nifty and Sensex fell about 0.4% and 0.5% on Tuesday, dragged by an uptick in oil prices and weakness in banks on the Reserve Bank of India's final credit-loss guidelines.
Brent crude hovered around $112 a barrel as efforts to end the Iran war remain deadlocked.
U.S. President Donald Trump has instructed aides to prepare for an extended blockade of Iran, the Wall Street Journal reported late on Tuesday, citing U.S. officials.
Concerns over oil price stability were compounded by the United Arab Emirates' exit from OPEC and OPEC+, with analysts warning that the loss of a key producer with spare capacity could weaken the bloc's ability to manage supply and cushion price shocks at a time of heightened geopolitical risks.
Markets got off to an uneven start in Asia , while Wall Street equities declined overnight ahead of the Federal Reserve's rate decision due after market hours. [MKTS/GLOB]
The meeting will be Jerome Powell's last as Fed chair before his term ends in May 2026. While markets are fully pricing in a pause, the commentary on future rate trajectory and inflation is keenly awaited.
Back home, foreign portfolio investors offloaded Indian stocks for the seventh session in a row on Tuesday, with outflows of 21.04 billion rupees ($222.6 million).
Total foreign outflows from Indian markets have reached $20.26 billion this year as of Tuesday, surpassing last year's record sales.
STOCKS TO WATCH
** Zomato owner Eternal beats profit view on food delivery, quick commerce boost
** Bandhan Bank posts 68% year-on-year rise in net profit in the March quarter
** Tyre maker CEAT's quarterly profit soars on strong demand, merger gains
** Sanofi India reports 14% y/y dip in profit in the fourth quarter
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