Indian Shares Expected to Open Lower Amid Rising Oil Prices
May 18 – Indian stock markets are anticipated to start on a down note this Monday. This comes after a spike in oil prices following a drone attack on a nuclear power facility in the United Arab Emirates, which has heightened tensions in the Middle East.
Market sentiment was further affected by warnings from U.S. President Donald Trump, who stated that “the clock is ticking” concerning Iran, indicating a halt in efforts to resolve the ongoing conflicts in the region.
As of 8:07 a.m. IST, GIFT Nifty futures stood at 23,567, suggesting a lower opening for the Nifty 50 compared to Friday’s closing level of 23,643.50.
On the global front, Brent crude oil prices reached $112 a barrel, marking a two-week high, while other Asian markets saw a decline of 0.8%.
Last week, domestic indices Nifty 50 and Sensex fell by 2.2% and 2.7%, respectively. The Indian rupee also depreciated beyond the 96-per-dollar mark, reaching a record low, driven by rising oil prices and ongoing foreign investor sales.
So far this year, foreign portfolio investors have pulled out approximately $23.52 billion from Indian stocks, already exceeding the previous record annual outflows set in 2022.
For Indian markets, continuing high crude oil prices and currency pressures remain significant concerns. Any further escalation in geopolitical tensions could push oil prices higher, raising inflation risks for India, which heavily relies on oil imports.
In stock-specific news, Tata Steel will be in the spotlight after reporting a fourth-quarter profit that was lower than expected due to increased raw material costs and a one-time restructuring charge connected to its Netherlands operations.
Power Grid might react to its quarterly earnings, having reported a nearly 10% increase in profit for the March quarter.
Gland Pharma is also expected to attract attention after its net profit soared by 97% in the March quarter.
(Reported by Bharath Rajeswaran in Bengaluru; Edited by Rashmi Aich)
