Nifty 50 likely to open steady as oil prices pull back
Indian shares are set for a steady start as easing oil prices offer relief. Investors remain cautious amid the Middle East conflict and global volatility.
Equity markets in India are expected to open with minimal changes on Wednesday, following a brief stabilization in global oil prices. This comes during a volatile week where investors are navigating mixed signals regarding the conflict involving the United States, Israel, and Iran. GIFT Nifty futures were trading at 24,303.50 early in the session, suggesting the Nifty 50 will start near its previous close of 24,261.60. The ongoing geopolitical crisis has kept market participants cautious, particularly after heavy strikes were reported in the region. However, some optimism emerged following comments from the American presidency regarding the potential duration of the hostilities. > "the conflict could be over soon" Global oil prices saw a temporary pullback after reports indicated the International Energy Agency (IEA) proposed a record release of oil reserves to manage rising costs. Brent crude futures recently traded slightly higher at $87.89 per barrel, while U.S. crude remained steady at $83.47. In broader Asian markets, equities found some relief. The Nikkei in Japan rose 2.1%, while the Kospi in South Korea advanced 3.2%. Despite this regional recovery, the Nifty 50 and Sensex have both shed approximately 5% since the start of the Middle East conflict, having recently hit one-year lows. On the domestic front, institutional activity showed a divergence. Foreign institutional investors offloaded shares worth 46.85 billion rupees on Tuesday, while domestic institutional investors supported the market with purchases totaling 62.50 billion rupees. Several individual stocks are in focus today. InterGlobe Aviation Limited announced the resignation of its chief executive officer, Pieter Elbers. Meanwhile, Polycab India Limited reported that the Income Tax Department has significantly reduced its tax demand from 3.27 billion rupees to 575.8 million rupees. Finally, Infosys Limited has entered a strategic partnership with Incora to integrate artificial intelligence into global supply chain operations.
