Indian shares set to open lower after US, Iran disagree on peace proposal
Indian shares are set to open lower on Monday, as oil prices spiked after the U.S. and Iran failed to reach an agreement on a peace proposal, while stock-specific reactions to corporate earnings are also expected to influence market direction.
GIFT Nifty futures were trading at 24,069, as of 07:42 a.m. IST, indicating the Nifty 50 is likely to open below its Friday close of 24,176.15.
Brent crude jumped 3.5% to about $105 a barrel after U.S. President Donald Trump on Sunday dismissed the Iranian response to Washington's proposal for peace talks as "unacceptable."
"Trump's comment has dampened hopes of an immediate diplomatic breakthrough and has once again brought the broader risks of supply disruption in global energy markets back in focus," said R Ponmudi, chief executive of Enrich Money.
Higher crude prices are detrimental for the world's third-largest oil importer, as they exacerbate inflationary pressures and weigh on growth and corporate earnings. [O/R]
Foreign institutional investors (FII) offloaded Indian shares worth 41.11 billion rupees ($435.5 million) on Friday, remaining net sellers, while domestic institutional investors (DII) were net buyers for the eleventh straight session, with inflows of 67.48 billion rupees.
Among stocks, Bank of Baroda will be in focus after the state-owned lender posted an 11% year-on-year growth in net profit, while asset quality and core credit costs remained stable.
'Tata Salt' maker Tata Consumer Products could rise after it projected a double-digit revenue growth in fiscal 2027 and beat March-quarter profit estimates, on steady demand for staples such as tea and salt.
Car maker Hyundai Motor India reported a smaller-than-expected fall in fourth-quarter profit, aided by strong domestic and overseas demand for its high-margin sport utility vehicles.
($1 = 94.4000 Indian rupees)
