Indian shares set for muted start as Middle East risks weigh

Business Recorder reported that Indian equities look set for a roughly flat opening on Friday, as a smaller chance of a US Federal Reserve rate increase in September balances out worries over ongoing Middle East tensions. GIFT Nifty futures stood at 24,428 points at 7:30 a.m. IST, signalling a subdued start for the Nifty 50, which ended Thursday at 24,395.85.

Over the week, the Nifty 50 has slipped 0.7 per cent and the BSE Sensex 0.5 per cent, as escalating Middle East strains have outweighed a solid earnings season and hopes that the Fed will keep rates unchanged for now. On Thursday, Washington said it could keep a naval blockade of Iran for an indefinite period and step up economic pressure on Tehran after ceasefire talks stalled.

Brent crude futures dropped to $87 a barrel, as bigger inventories and weaker global demand projections counteracted geopolitical worries. Overseas investors sold a net 5.11 billion rupees ($53.54 million) of local shares on Thursday, provisional data showed, extending their selling to a third straight session. Meanwhile, July producer price figures from the United States were flat, which further lowered the odds of a Fed rate increase next month.