Indian shares set to extend advance on softer oil, steady earnings

What happened

Indian shares were expected to open higher on Tuesday after three sessions of gains, helped by strong company earnings, easing crude oil prices and early signs of foreign investors returning. GIFT Nifty futures were at 23,523.5 at 8:05 a.m. IST, pointing to a positive start for the Nifty 50, which closed at 23,440.8 on Monday.

Confirmed

Global impact / market context

Softer crude oil lowers costs for Indian companies that buy fuel and raw materials, which can lift profit per sale. Foreign investors bought a net 31.15 billion Indian rupees of Indian shares on Monday, which means more outside money is flowing into the market and can support share prices.

Analyst inference

Brent crude traded flat at about $105 a barrel after falling 7% in the previous session, as talks between Iran and Qatari mediators raised hopes of ending the US-Israeli war with Iran. Reports that the US struck Iran's Qeshm Island kept tensions elevated, which could quickly reverse the oil price decline.

Analyst inference

What to watch

1. Marico will be in focus after beating its quarterly profit view, which means its reported profit was higher than analysts expected. Watch whether the shares hold those gains during the session. Confirmed
2. Watch Brent crude oil prices near $105 a barrel. A further drop would lower costs for Indian companies, while a rebound after the Qeshm Island reports would raise fuel and input costs. Analyst inference
3. Watch whether foreign investors keep buying Indian shares after Monday's net inflows of 31.15 billion rupees, since continued buying could support the Nifty 50 index and extend the three-session advance. Proposed

Evidence

• Original source link unavailable