Indian shares are poised to open lower on Monday, tracking Asian peers as oil surged above $100 a barrel after US-Iran peace talks failed to make progress, heightening the risks to economic growth and corporate profitability.
GIFT Nifty futures were trading at 23,756.5 as of 7:43 a.m. IST, indicating that the benchmark Nifty 50 will open about 1.2% below Friday’s close of 24,050.60.
Both benchmarks, Nifty and Sensex, rose about 6% last week, posting their best showing in over five years as investors took comfort from a fragile U.S.-Iran ceasefire.
However, negotiations between the two countries in Islamabad ended in a stalemate. U.S. President Donald Trump on Sunday said the U.S. Navy would itself start blockading the Strait of Hormuz, intensifying geopolitical tensions and sending oil prices higher.
Brent crude jumped about 7% to $102 per barrel. Other Asian markets fell about 1%.
Markets are likely to shift back into a risk-off mode as investors assess March quarter earnings, said two analysts, adding that elevated crude prices, geopolitical uncertainty, and persistent foreign outflows will act as key overhangs on Monday.
Foreign portfolio investors (FPIs) sold Indian stocks worth $5.15 billion so far in April, after offloading a record $12.7 billion in March.
While FPI outflows have intensified, inflows into equity mutual funds from domestic investors climbed to an eight-month high of $4.4 billion in March, helping limit the market decline.
The Nifty and the Sensex are down about 4.5% each since the start of the Iran war.
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