Indian shares are expected to open lower on Thursday, extending losses from the previous two sessions, as the escalating Middle East war keeps oil above $110 per barrel, stoking inflation concerns.
GIFT Nifty futures were at 22,643 at 7:55 a.m. IST (0225 GMT), indicating a negative start for the benchmark Nifty 50, which closed at 22,811.35 on Wednesday.
Brent crude futures were up 1.3% at $110.3 per barrel as more attacks in Saudi Arabia by Yemen’s Houthis prompted the United States to order some diplomats and family members to leave its missions in the kingdom.
Higher oil prices are a negative for India, which imports the bulk of its energy requirements, as they can increase inflation, strain its fiscal deficit and hit corporate profits.
Members of India’s rate-setting panel indicated that further rate hikes may be needed to curb inflation but stopped short of endorsing an aggressive tightening cycle over risks to economic growth, minutes of the committee’s meeting released on Wednesday showed.
The Nifty 50 and BSE Sensex have shed 1.5% and 1.4%, respectively, this week.
Meanwhile, foreign investors bought Indian shares worth 10.22 billion rupees ($108.19 million) on Wednesday, according to provisional data. This would be their second session of buying in three.
The focus will remain on Jio Platforms’ initial public offering. The $3.2 billion issue was fully subscribed within a couple of hours of launch on Wednesday, as institutional investors flocked to India’s largest offering.
STOCKS TO WATCH
** Eternal beats quarterly revenue estimate, although profit misses on higher spending on expanding its quick-commerce business Blinkit. It expects Blinkit to grow faster from December quarter, betting on a more stable competitive environment.
** Mahindra & Mahindra Financial Services reports higher revenue and profit for July-September led by strong growth in disbursals.
** Bharat Electronics says it received orders worth 10.11 billion rupees since its last disclosure on October 13.
($1 = 94.4600 Indian rupees)
(Reporting by Vivek Kumar M; Editing by Jochelle Mendonca)
