Indian shares to open near six-month lows as oil prices rise

Business Recorder reported that Indian equities were set for a roughly flat opening on Tuesday, after falling close to a six-month low during the prior session. The slide coincided with Brent crude gaining 1.34 per cent to reach $106.7 a barrel, amid Middle East supply concerns tied to the US-Iran conflict.

Higher crude prices are a concern for India, which ranks third globally among buyers of the commodity, since they could fuel inflation, enlarge the import bill and weigh on economic expansion and company margins. Early pricing in GIFT Nifty futures, at 22,819.5 points by 7:51 a.m. IST, pointed to a muted start for the Nifty 50, which had closed at 22,780.25 on Monday.

On Monday, overseas institutional investors offloaded stock worth 53.53 billion Indian rupees, whereas domestic institutions acquired shares valued at 51.89 billion rupees, provisional exchange data showed. Attention is also on Adani group firms after the Securities and Exchange Board of India dropped proceedings against chairman Gautam Adani and four group companies over public-float violations. Separately, Tata Trusts has put forward a plan to merge two group firms with Tata Sons, intended to avert a listing that India's central bank is driving.