Indian shares set for muted start as higher oil prices, Treasury yields weigh

Indian shares are anticipated to open without significant change on Wednesday, as the market faces headwinds from rising oil prices and higher global bond yields, according to wire reports. The GIFT Nifty futures were trading at 24,202.5 points at 7:19 a.m. IST on Wednesday, signaling a subdued opening for the benchmark Nifty 50 index, which closed at 24,154.9 on the previous trading day. The index has lost 1.7% over the past six sessions.

U.S. President Donald Trump declared on Tuesday that there would be no negotiations with Iran and affirmed that the Strait of Hormuz remained open, despite Iran's claim that it remained closed to shipping. This stance contributed to a surge in Brent crude futures to $92 per barrel. Simultaneously, long-term borrowing costs for countries such as the United States, Germany, and Japan reached their highest levels in decades, driven by escalating government debt and geopolitical tensions, which in turn raised borrowing expenses for businesses and individuals, further complicating financial policies.

Asian stock markets experienced a decline of 1.8%, mirroring overnight losses on Wall Street, primarily attributed to technology stocks reacting to higher bond yields. For India and other emerging markets, the upward trajectory of Treasury yields renders these economies relatively less appealing to foreign investors. In fact, investors have already divested a record $25 billion worth of Indian shares thus far in 2026.

As of Tuesday's trading, foreign investors netted the purchase of Indian shares worth 16.52 billion rupees ($172.66 million), marking their second buying session in six days.

The investment community is eagerly awaiting the forthcoming minutes of the U.S. Federal Reserve's July policy meeting, set to be released later in the day, as well as Federal Reserve Chair Kevin Warsh's forthcoming remarks at the Jackson Hole Symposium scheduled for the following week.