Oct 3 (Askume) – Indian shares were expected to open lower on Thursday tracking other Asian markets as conflict in the Middle East escalated and investors’ appetite for risk waned.
As of 8:13 am IST, the GIFT Nifty was trading at 25,701.50 points, indicating that the NSE Nifty 50 (.NSEI) would open lower than its previous close of 25,796.90 points.
Tensions in the Middle East have risen further after Iran fired ballistic missiles at Israel earlier this week, raising concerns that oil supplies from the world’s biggest oil-producing region could be threatened if the conflict escalates.
Oil prices moved higher that day. Rising oil prices are bad for commodity importers like India as a large part of the country’s import bill comes from crude oil.
Most Asian peers (.MIAPJ0000PUS) shed about 1%, while global stocks were steady.
Japan’s Nikkei 225 (.N225) was the exception, rising 2.2% as a weaker yen helped exporters’ prospects.
Wall Street indexes closed with gains overnight on better-than-expected labor market data.
The Nifty fell 1.6% in the last three sessions after hitting a record high due to profit booking. Indian markets were closed on Wednesday for a local holiday.
Foreign institutional investors (FIIs) turned net sellers of Indian stocks on Tuesday, reversing the buying momentum of September.
Following a sharp cut in interest rates by the Federal Reserve, FIIs bought Indian equities worth Rs 57,724 crore in September, the highest level so far in 2024, pushing the benchmark indices to record highs.
Stocks to watch:
** Dr. Reddy’s Laboratories (REDY.NS) : The drugmaker signed a licensing deal with Gilead Sciences (GILD.O) to sell HIV prevention drug in India and other countries . Learn more
** Tata Motors (TAMO.NS) : The automaker’s total domestic sales fell year-on-year in September.
** Dabur (DABU.NS) : The consumer goods maker expects first quarterly revenue decline since 2020.
(1 USD = 83.9490 Indian Rupees)
