Indian Market Outlook: Shares Set to Open Lower on Oil Spike

Indian Market Outlook Signals Lower Opening As Oil Prices Surge

Oil price spike impacts investor sentiment

Indian equities are likely to begin Thursday’s trading session on a weaker note as a sharp rise in global oil prices weighs on investor sentiment.

The surge in crude prices followed reports of attacks on ships operating in the Strait of Hormuz and Iraqi waters. The developments have raised concerns about supply disruptions and inflation pressures.

GIFT Nifty indicates weaker start

Early indicators point to a negative opening for benchmark indices. GIFT Nifty futures were trading at 23,784.50 at 07:58 a.m. IST.

This suggests that the Nifty 50 index may open below its previous closing level of 23,866.85 recorded on Wednesday. The expected decline would extend losses seen in the previous session.

Tanker attacks push crude prices higher

Oil prices rose sharply after Iraqi security officials reported that Iranian explosive-laden boats struck two fuel-oil tankers.

The incidents occurred amid wider supply disruptions linked to the ongoing U.S.-Israeli war on Iran. Officials also stated that oil ports had completely stopped operations following the attacks.

The developments added to fears of prolonged disruption in the region’s energy supply chains.

Strategic oil releases fail to calm markets

Attempts to stabilise markets through large reserve releases have not eased price volatility.

The International Energy Agency announced plans to release 400 million barrels from its reserves, the largest such move in its history.

The United States also pledged to contribute 172 million barrels starting next week as part of the coordinated effort. Despite these measures, oil prices continued to climb.

Brent crude futures rose $6.5, or 7.13%, to $98.5 per barrel at 0200 GMT. U.S. West Texas Intermediate crude increased $6.1, or 7.1%, reaching $93.43.

Global markets remain cautious

The ongoing conflict in the Middle East continues to influence global financial markets. Investors remain cautious as they assess the potential impact on inflation and long-term energy supply.

Asian equities declined on Thursday, tracking overnight losses in both U.S. and European markets.

Domestic markets under pressure

Indian benchmark indices have already faced significant pressure in recent sessions. Both the Nifty and Sensex recorded sharp declines on Wednesday.

Since the start of the war, the two indices have fallen by about 5%.

Foreign institutional investors sold Indian shares worth 59.65 billion rupees ($646.7 million) on Wednesday, according to provisional NSE data. Domestic institutional investors bought shares worth 46.14 billion rupees during the session.

Stocks to watch in Thursday’s session

Several companies are expected to remain in focus during the session.

Mahanagar Gas said gas curtailment has affected supply to its industrial and commercial customers.

KEC International secured new transmission and distribution project orders worth 14.76 billion rupees, including its largest composite order in Saudi Arabia.

Wipro also announced a multi-year contract with TruStage aimed at modernizing its retirement services business.