Indian shares set for modest gains, but Mideast tensions keep investors wary

According to Business Recorder, Indian shares were expected to open slightly higher on Monday after four straight weekly losses, though escalating Middle East tensions could weigh on risk appetite. GIFT Nifty futures hinted at a flat to slightly positive open for the Nifty 50, which ended Friday at 23,897.7. Investors are also watching revised pre-open session rules, which bring that phase closer to the new closing auction session that has caused sharp swings near the close.

Washington said on Saturday that it had hit three Iranian tankers, following Iranian ballistic missile launches against two American naval vessels. Iran has pledged to intensify work aimed at easing the damage caused by American sanctions, while a senior official warned that any further attack would bring a severe reply. Brent crude rose 0.4% to near $97 a barrel, and MSCI's Asia-Pacific index excluding Japan gained 0.9%.

Overseas investors sold Indian equities worth 31.12 billion rupees ($329.38 million) on Friday, bringing their September sales to $782 million so far. Asian stocks gained after strong US employment figures bolstered belief in worldwide growth, while leaving a possible Federal Reserve rate increase this month on the table. Across the last four weeks, the Nifty 50 and Sensex declined 2.7% and 2.5%, with pricier oil and higher global bond yields souring sentiment.