Indian shares on track for tepid open as US-Iran stalemate lifts oil prices
INDA•Indian shares were set for a subdued open as Brent crude rose 1.5% to about $106 per barrel following a stalemate in US-Iran peace talks. The Nifty 50 and Sensex had fallen for seven consecutive sessions, losing nearly 6%.
1. Oil and market outlook
Indian shares were set for a subdued open on Monday, with investors cautious after the benchmark indexes’ longest weekly losing streak since 2020. GIFT Nifty futures at 23,111 points indicated a muted start for the Nifty 50, which closed at 23,140.5 on Friday. Brent crude rose 1.5% to about $106 per barrel, while Asian markets fell 0.2%.
2. Investor selling
India, the world’s third-largest crude importer, remains vulnerable to higher oil prices, which can stoke inflation, raise the import bill and drag corporate margins. Foreign investors net sold Indian shares worth 36.94 billion rupees ($385.54 million) on Friday and have sold $1.8 billion so far in September, taking year-to-date selling to $25.86 billion.
3. Company developments
Aequs approved preferential warrant issues worth up to 6.5 billion rupees, including to its promoter group, as it explores opportunities across its aerospace and consumer businesses. Augment India Holdings is reportedly likely to sell a 7.25% stake in Clean Max Enviro through a block deal at a 10% discount to the current market price.
