Indian Markets Expected to Open Higher Amid Global Optimism
Indian share markets are anticipated to start on a positive note this Monday, reflecting a global upward trend. Oil prices have also fallen after U.S. President Donald Trump and Iran’s deputy foreign minister announced a preliminary agreement to conclude the ongoing conflict in the region and reopen the Strait of Hormuz for shipping.
Pakistani Prime Minister Shehbaz Sharif, who played a key role in facilitating discussions, confirmed that a memorandum of understanding would be signed in Switzerland on Friday.
As of 7:38 a.m. IST, GIFT Nifty futures were trading at 23,983.5, suggesting that the benchmark Nifty 50 index could open around 1.5% higher than Friday’s close of 23,622.90.
On Friday, the Nifty 50 and BSE Sensex saw gains of about 2% and 2.3%, respectively, driven by increased investor confidence following the news of potential diplomatic progress in the U.S.-Iran conflict. Other Asian markets also jumped by approximately 2.4%, while Brent crude oil prices dropped by 4.1% to $84 a barrel, marking the lowest level since March.
This decline in oil prices bodes well for India, the third-largest oil importer in the world, as it helps to alleviate inflationary pressures, stabilize the rupee, and reduce the trade deficit.
Pravesh Gour, a senior analyst at Swastika Investmart, noted, “The resolution in the Middle East lowers geopolitical risks, and the fall in crude oil prices is particularly beneficial for India, making the economic outlook brighter.”
However, foreign portfolio investors (FPIs) sold Indian stocks worth ₹10.82 billion ($113.77 million) on Friday, while domestic institutional investors purchased shares worth ₹53.41 billion, according to the NSE’s provisional data. Over the past year, FPIs have withdrawn a record $30.7 billion, influenced by the Iran conflict and reduced involvement in the global AI-driven market. Experts believe that resolving the Middle East tensions may help reverse these outflows.
Since the Iran conflict began in late February, both the Nifty and Sensex have seen declines of 6.2% and 7.1%, respectively.
Stocks to Watch:
- Oil marketing companies, as well as tire, paint manufacturers, and airlines, may benefit from the drop in crude prices.
- Dr. Reddy’s Laboratories has announced the U.S. launch of its Bosulif drug, which is used for treating chronic myeloid leukemia.
- Aurobindo Pharma reported that its Telangana manufacturing facility, Eugia Pharma, received an “official action indicated” classification from U.S. drug regulators following an inspection that noted 11 observations.
Stay tuned as we continue to monitor the markets for more updates.
