Indian shares are set to open lower on Monday, and are set for their worst monthly performance in six years, tracking declines across Asia after oil surged above $115 a barrel as an expanding Middle East war sapped risk appetite.
GIFT Nifty futures were trading at 22,564.5 as of 8:04 a.m. IST, indicating that the benchmark Nifty 50 may open below Friday’s close of 22,819.6 points.
The US-Israeli war on Iran has entered its fifth week and spread further across the Middle East, with Yemen’s Iran-aligned Houthis launching attacks on Israel over the weekend, stoking fears of disruptions to shipping lanes around the Arabian Peninsula and the Red Sea.
Meanwhile, Pakistan said on Sunday it was preparing to host “meaningful talks” in the coming days to end the war, even as Tehran warned it was ready to respond if Washington deployed troops on the ground.
Asian stocks declined 1.9%, while Brent crude was poised for a record monthly rise amid the widening turmoil.
India’s benchmark Nifty 50 and Sensex have lost about 9.5% since the U.S.-Israeli war on Iran began on February 28.
Meanwhile, the Indian rupee has slipped to a record low of 94.84 per dollar.
Foreign investors offloaded 43.67 billion rupees ($460.77 million) worth of Indian shares on Friday, taking their March outflows to a record $12.3 billion so far, per provisional data.
Separately, the central bank has tightened limits on lenders’ net open forex positions as it moved to curb volatility in the weakening rupee.
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