Indian shares set for muted start as crude remains at elevated levels

Business Recorder reported that Indian shares were poised for a subdued Monday open, extending last week's caution as no progress emerged toward ending the Iran war, keeping crude prices high. GIFT Nifty futures traded at 24,399 points by 7:24 a.m. IST, pointing to a flat opening for the Nifty 50, which had closed at 24,366 on Friday. Brent crude hovered near $89 a barrel, rising 0.7 per cent on the day.

Tensions escalated over the weekend, with Iran calling on the United States to accept defeat, while President Donald Trump described Tehran as very evil and warned Americans to brace for sustained high fuel costs linked to the conflict. Regional equities were broadly flat, with MSCI's Asia-Pacific index excluding Japan little changed, as investors watched oil prices closely. Last week the Nifty 50 fell 0.8 per cent and the BSE Sensex slipped 0.6 per cent.

The report noted that higher crude could strain India, which ranks third globally among oil importers, by widening the import bill, lifting fuel inflation and squeezing corporate margins. On Friday, foreign investors returned as net buyers of Indian equities after three sessions of selling, purchasing shares worth 5.08 billion Indian rupees, while domestic institutions bought 3.56 billion Indian rupees on a net basis.