Indian shares extend gains on softer oil, strong earnings

What happened

Indian shares advanced on Tuesday, building on three sessions of gains, helped by strong company earnings, easing crude oil prices and early signs of foreign investors returning to India. The Nifty 50 added 0.76% to 23,622.25 and the Sensex rose 0.92% to 76,385.48.

Confirmed

Global impact / market context

Softer crude oil lowers fuel and input costs for Indian companies, which can lift profit per sale. Added foreign buying brings more cash into the market. Together with strong earnings, this can encourage companies to increase capital spending, which means spending on long-term assets like factories.

Analyst inference

Brent crude traded flat at about $105 a barrel after dropping 7% in the previous session, as talks between Iran and Qatari mediators lifted hopes for an end to the US-Israeli war with Iran. Other Asian markets were subdued ahead of US midterm election voting.

Analyst inference

What to watch

1. Foreign portfolio investors were net buyers on Monday, with inflows of 31.15 billion rupees, about $328.24 million, while domestic institutional investors sold shares worth a net 3.92 billion rupees, per provisional NSE data. Confirmed
2. Nomura analysts said they expect sentiment toward Indian equities among foreign investors to improve alongside strong corporate earnings, driving portfolio flows in the near term, supported by low starting valuations. Proposed
3. Watch whether the crude oil decline holds as Iran and Qatari mediator talks continue, since sustained lower oil would reduce costs for Indian companies and could support earnings and capital spending plans. Analyst inference

Evidence

• Original source link unavailable