Indian shares expected to open higher as crude oil prices drop
GIFT Nifty futures indicate a positive start following a slump in oil prices and US election results.
Indian equity markets are expected to begin on a positive note this Thursday, according to a report by Mint. The anticipated rise comes as crude oil prices fell to a two-month low, with investors suggesting the US Democratic victory in midterm elections could accelerate an end to the US-Israeli war on Iran.
GIFT Nifty futures stood at 24,295.5 at 8:01 a.m. IST, pointing to a gain for the Nifty 50 index, which ended Wednesday at 23,960.6. This follows a period where the Nifty 50 and BSE Sensex rose 5.6 per cent over the last five sessions.
Provisional data shows foreign investors purchased Indian shares worth Rs 72.84 billion ($769.65 million) on Wednesday. This represents the fourth consecutive session of buying by foreign investors. Meanwhile, Brent crude futures declined 1 per cent to $93.5 per barrel.
Hariselvan Radhakrishnan, founder and CEO of research advisory firm HST Wealth, said that if the current magnitude of the oil price move is sustained, it could materially improve India's near-term macro and earnings outlook.
In corporate news, exchange operator BSE reported a 45 per cent increase in its second-quarter profit. Apollo Hospitals Enterprise also saw its quarterly profit grow by nearly a third, which was broadly in line with analyst estimates.
