Indian shares may open higher, elevated crude prices to weigh

According to Business Recorder, Indian equities are expected to open slightly firmer on Wednesday, buoyed by solid corporate earnings and buying from overseas investors. Still, elevated crude prices and wariness ahead of American inflation figures could temper sentiment. GIFT Nifty futures stood at 24,553 points at 8:03 a.m. IST, pointing to a constructive start for the Nifty 50, which ended Tuesday at 24,471.7.

The Nifty 50 and BSE Sensex each lost 0.5 per cent on Tuesday. Oil rose further and Wall Street closed lower as traders grew less hopeful about a possible accord that could restore regional calm and reopen the Strait of Hormuz. Separately, the United States and the Iran-aligned Houthis of Yemen each reported attacks on shipping, while hopes of ending the Iran war seemed to fade.

Investors are focused on US consumer and producer inflation readings due this week, which could shape Federal Reserve policy. A softer jobs report last week had already reduced expectations of a near-term Fed rate increase. Lower US rates typically draw foreign capital toward emerging economies such as India, since a weaker dollar and reduced Treasury yields improve their appeal. Overseas investors bought 2.59 billion Indian rupees ($27.14 million) of shares on Tuesday, per provisional figures, their ninth net buying day in the last 10 sessions, suggesting a recovery from the record sell-off seen earlier this year.