Indian shares likely to open flat as oil surge counters strong foreign inflows
Nifty gains 1.1% so far this week with $8 billion November inflows; retail inflation hits 6.09% as Brent crude rises to $95.23 per barrel
Indian equity markets are expected to open flat on Friday, with foreign institutional investments offering support amidst rising oil prices and inflation concerns. The Nifty futures stood at 25,267.5 as of 7:13 a.m. IST, suggesting a lackluster start to the trading day for the Nifty 50 index, which closed at 25,299.35 the previous day.
Foreign investors maintained their buying momentum, accumulating a net purchase of ₹7,831 crore ($832.71 million) in Indian equities on Thursday, marking their ninth consecutive day of net buying. The Nifty 50 and Sensex indices have registered a 1.1% gain so far this week, setting the stage for another weekly increase. This recovery comes as a welcome turnaround for India's equity market, which had lagged behind its emerging-market counterparts for nearly two years.
The resurgence is attributed to a global shift of interest towards AI stocks, which have recently cooled due to worries over heightened scrutiny of data center investments following Democratic victories in the U.S. mid-term elections. However, domestic inflation remains a significant hurdle, with retail inflation surging to 6.09% in October, surpassing the Reserve Bank of India's permissible limit of 6%.
This surge in prices has put pressure on consumer wallets and heightened expectations of further interest rate hikes. Meanwhile, oil prices have also climbed, with Brent crude futures hovering around $95.23 per barrel. The escalation of attacks on Saudi energy infrastructure and potential disruptions in oil shipments through the Strait of Hormuz have contributed to the upward trend in oil prices.
In the domestic stock market, Ola Electric's quarterly loss narrowed in the second quarter, driven by cost-cutting and restructuring efforts, although revenue declined by 39%. Telecom company Vodafone Idea reported a narrower second-quarter loss, buoyed by higher average revenue per user as more subscribers migrated to high-value 4G and 5G services.
SoftBank's affiliate, SVF II Meerkat (DE) LLC, is reportedly considering selling a 1% stake in e-commerce firm Meesho Ltd through a block deal worth about ₹1,174 crore, according to media reports.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
