Indian shares on track for tepid open as US-Iran stalemate lifts oil prices

Indian shares were expected to open quietly on Monday, according to Business Recorder, as investors stayed wary after the Nifty 50 and BSE Sensex posted their longest weekly losing run since 2020. Crude prices rose after US-Iran peace talks stalled. President Donald Trump said he had turned down an Iranian plan to reopen the Strait of Hormuz and halt the fighting, while Iran maintained on Sunday that diplomacy alone can resolve its dispute with the United States and Israel.

GIFT Nifty futures pointed to a muted start, trading at 23,111 points at 7:41 a.m. IST against the 23,140.5 close on Friday. Brent crude gained 1.5% to about $106 a barrel, while Asian markets slipped 0.2%. Oil has been a central concern since late February, when the US and Israel launched joint strikes on Iran and triggered a wider Middle East war.

India, the world's third-largest crude importer, faces higher inflation, a bigger import bill and pressure on corporate margins if prices stay elevated. Foreign investors sold Indian shares worth 36.94 billion rupees ($385.54 million) on Friday, based on provisional data, and have offloaded $1.8 billion so far in September. Their year-to-date net selling has reached $25.86 billion.