Indian shares are likely to stage a partial rebound at the open on Thursday, after three consecutive sessions of losses, though the recovery is likely to remain fragile due to elevated oil prices and renewed West Asia tensions.
futures were at 24,094 points as of 8:00 a.m. IST, indicating a positive start for the Nifty 50 index, which closed at 23,914.45 on Wednesday.
The and the Sensex have each fallen about 1 per cent over the past three sessions, pressured by climbing crude prices and a rise in global bond yields as investors reassessed the prospect of interest rates staying higher for longer.
“While investor sentiment has deteriorated after escalating tensions in West Asia, the sharp decline has pushed the benchmarks closer to downside targets, with Nifty likely to find resistance near 24,000 levels,” said Ajit Mishra, senior vice president of research at Religare Broking.
Brent crude was little changed on Thursday, after US President Donald Trump said the latest attacks on Iran would be short-lived, raising hopes of renewed West Asia hostilities easing. However, Brent traded at an elevated $96 per barrel, with markets assessing the impact of the renewed hostilities on energy supplies.
Persistently high oil prices are a particular concern for , a major crude importer, as they can worsen inflation and strain the current account.
Other Asian markets opened higher, ahead of the crucial US payrolls report that could influence the future rate trajectory, while comments from Federal Reserve Bank of New York President John Williams tempered expectations of a hike this month.
Foreign institutional investors’ inflows in Indian markets stood at ₹6,688 crore on Wednesday, while domestic institutional investors purchased shares worth ₹2,813 crore, according to NSE’s provisional data.
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