Indian shares set to extend rally on US-Iran peace deal hopes, lower oil
Indian shares are likely to extend their rally on Thursday as hopes of a peace deal between the U.S. and Iran pulled oil prices lower, although Washington's shipping blockade at the crucial Strait of Hormuz remained a key risk.
GIFT Nifty futures were trading at 24,317.5 as of 7:59 a.m. IST, indicating that the benchmark Nifty 50 will open above Wednesday's close of 24,231.3.
Asian markets pushed higher, rising 0.7%. [MKTS/GLOB]
India's Nifty 50 and Sensex advanced 1.6% on Wednesday to hit a one-month high after the U.S. said talks with Iran could resume soon in Pakistan.
Brent crude slipped below $95 on Thursday after reports that Iran could consider allowing ships to pass through around the strait, outweighing concerns over ongoing supply disruptions. [O/R]
Lower crude prices are a positive for India, the world's third-largest oil importer, as they help ease the import bill, inflation, and pressure on corporate margins.
The war has resulted in the largest-ever disruption of global oil and gas supplies by choking traffic through the strait, pushing crude prices as high as almost $120 per barrel.
Foreign investors, who have been aggressive sellers of Indian equities amid the war, bought 6.66 billion rupees ($71.34 million) worth of shares on Wednesday, per provisional data. This will be their second session of net buying in India since the conflict began in late February.
U.S. President Donald Trump said he believes the war is nearly over, even as the shipping blockade he announced came into effect.
Back home, investors are monitoring the earnings season, with IT company Wipro and HDFC Life Insurance Company scheduled to report their January-March results on Thursday.
STOCKS TO WATCH
** Non-bank lender HDB Financial Services reports a 41.4% rise in fourth-quarter profit, driven by margin expansion, improving asset quality and growth in its consumer finance portfolio.
** ICICI Lombard General Insurance posts a 7% rise in March-quarter profit as stronger premiums from its retail health and motor segments cushioned the impact from higher claims payouts.
** Real estate developer Brigade Enterprises signs joint development agreement for a residential township project in Bengaluru, with an estimated gross development value of 72 billion rupees.
