Indian shares seen opening lower as high oil prices fuel inflation worries

Indian equities were poised for another weak session on Thursday, with GIFT Nifty futures at 22,643 at 7:55 a.m. IST, below Wednesday’s Nifty 50 close of 22,811.35. Business Recorder reported that Brent crude had climbed 1.3% to $110.3 a barrel as conflict in the Middle East intensified. Recent attacks in Saudi Arabia by Yemen’s Houthis also led the United States to direct some diplomats and their families to leave missions in the kingdom.

The higher oil bill is a concern for India because it imports most of its energy, putting pressure on inflation, public finances and company earnings. Minutes released Wednesday showed rate-setting officials saw the possibility of further increases to contain inflation, while expressing caution about harming economic growth. The Nifty 50 and BSE Sensex were down 1.5% and 1.4% for the week, respectively, although overseas investors purchased 10.22 billion rupees ($108.19 million) of Indian shares on Wednesday. Jio Platforms’ $3.2 billion IPO was fully subscribed within hours of opening.