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Indian shares are expected to open higher on Tuesday, after five consecutive weekly losses, although higher oil prices and global bond yields ahead of this week's Federal Reserve meeting could keep any optimism in check.

HDFC Bank, the country's top private lender and a heavyweight on the benchmark Nifty, will be in focus after it sent names of two candidates to the Reserve Bank of India for the role of CEO, formally starting the succession process for Sashidhar Jagdishan, who is due to retire later this year.

GIFT Nifty futures were trading around 23,525.5 points as of 7:49 a.m. IST, indicating a positive start for the Nifty 50 index, which closed at 23,398.1 on Friday. Indian markets were closed on Monday for a local holiday.

Analysts said that investors could look for bargains after the Nifty 50 and BSE Sensex lost about 4.8% each in the last five weeks.

However, gains may be limited as Brent crude trades near $107 a barrel and weak overnight global cues continue to restrict risk appetite, said Hariselvan Radhakrishnan, founder and CEO at research analysis firm HST Wealth.

Oil prices remain elevated on concerns that the Middle East conflict could spread further and threaten global energy supplies.

Yemen's Iran-aligned Houthis launched a new wave of attacks on Saudi Arabia and were digging into positions on the western coast of Yemen along the Red Sea, Yemeni officials said. Gulf Arab states also postponed planned talks with Iran, amplifying concerns the conflict could widen.

Brent crude prices were trading near $107 in Asian trading. Higher crude oil prices are a negative for India, the world's third-largest oil importer.

Accelerating inflationary pressures triggered by rising oil prices have also raised bets of a U.S. rate hike later this week.

Benchmark 10-year Treasury yields hit the key psychological level of 5% on Monday for the first time since October 2023, a milestone that analysts say could ripple through the U.S. economy.

Meanwhile, India's annual retail inflation accelerated further in August as price pressures spread beyond food and transport, strengthening the case for a rate hike by the central bank next month.

STOCKS TO WATCH

** Solar Industries says its unit will acquire South Africa's Omnia Holdings in an all-cash deal worth about $1.36 billion, as the explosives and ammunition maker looks to expand its global mining business

** Coforge says chair of its nomination and remuneration committee, DK Singh, has resigned citing "differences and tension", days after Chairman Om Prakash Bhatt stepped down following an internal audit review

** KEC International gets new orders worth 13.03 billion rupees