Indian shares likely to rebound after recent slide; higher oil prices to cap upside

Business Recorder reported that Indian shares are expected to stage a partial recovery when trading opens on Thursday, after three straight sessions of losses. The benchmark Nifty 50 closed at 23,914.45 on Wednesday, while GIFT Nifty futures pointed to a firmer start with 24,094 points at 8:00 a.m. IST. Both the Nifty and the Sensex have shed roughly 1 per cent over the last three sessions.

Pressure came from climbing crude prices and higher global bond yields, as investors reassessed the likelihood of interest rates remaining high for longer. Brent crude was roughly unchanged on Thursday after US President Donald Trump called the latest strikes on Iran temporary, but it still traded near $96 a barrel. Ajit Mishra of Religare Broking noted that sentiment has deteriorated, with Nifty likely to meet resistance near 24,000.

Asian peers started higher before the crucial US employment data release, while comments from New York Fed President John Williams eased expectations of a rate hike this month. Foreign institutional investors recorded inflows of 66.88 billion rupees on Wednesday, while domestic institutions bought shares worth 28.13 billion rupees, according to provisional NSE data.