Indian shares set to open lower as crude rises above $100; NSE listing in focus

Indian shares are expected to open lower on Thursday as oil prices surpassed $100 a barrel the previous day, following remarks by Iranian President Masoud Pezeshkian at the UN General Assembly. Tehran has vowed never to yield to US pressure in the ongoing conflict with the United States, despite their ongoing diplomatic standoff.

A senior Iranian official has urged Reuters that diplomacy should persist in resolving the issue. Market attention is currently centered on the listing of India's largest bourse, the National Stock Exchange of India, which is anticipated to gain 2%-3% during its debut trading, according to analysts. As of 8:02 a.m. IST, GIFT Nifty futures stood at 23,270 points, suggesting a negative opening for the benchmark Nifty 50 index, which closed at 23,446.8 on Wednesday.

Brent crude oil hovered around $102.5 a barrel on Thursday, up 4% from the prior session. Higher oil prices negatively impact India, the world's third-largest importer, as they strain the import bill, fuel inflation concerns, and hinder corporate profitability. Other Asian markets declined 0.6%, mirroring Wall Street's losses from the previous night, while the benchmark Treasury yield reached its peak since 2007 on Wednesday.

The likelihood of a Federal Reserve rate hike in October escalated to 66% from 53% the prior day after US business activity surged to a five-year high in September. Profit-taking in domestic markets could ensue from the recent rally, given renewed uncertainty over the US-Iran diplomatic process and surging US Treasury yields. Among other stocks, insurers and lenders will be scrutinized following the country's insurance regulator's proposal to revise commission regulations, capping payouts, linking them to product complexity, and dispersing life insurers' commissions beyond the initial year.