Indian shares poised to rebound as Fed-hike fears, oil prices ease

Indian shares are anticipated to rebound on Monday, following a 25-year-long losing streak, as concerns over aggressive US monetary tightening ease and oil prices decline. The Nifty 50 index opened at 22,639 points, signaling a positive start to the trading day, after closing at 22,421.95 on Thursday. The US jobs data, which was softer than expected, has reduced expectations of a Federal Reserve rate hike, providing relief to emerging-market assets and boosting market sentiment.

Additionally, oil prices are expected to support the rebound, with Brent crude falling 0.6% to $101.6 per barrel due to increased Middle East exports and G7 nations' coordinated stock releases. Domestic institutional investors purchased equities worth 100.42 billion rupees, while foreign portfolio investors remained net sellers for the sixth consecutive session, offloading stocks worth 94.84 billion rupees.

The probability of an October Fed rate hike has dropped below 25%, further bolstering sentiment across emerging markets. A sustained recovery in Indian equities will likely require further oil price reductions and a slowdown in foreign outflows. Notably, HDFC Bank will be under scrutiny as the country’s largest private lender appoints Anup Bagchi as its next CEO for a three-year term, marking the first external candidate to lead the bank.

Brief written by urgent.news from Business Recorder's own syndicated text. Machine-written — may contain errors; check the original before relying on it.