Indian shares likely to open flat as foreign inflows offset oil-driven worries

what happened

According to Reuters, the Nifty 50 and Sensex are likely to trade in a narrow range on Friday after recent gains. GIFT Nifty futures stood at 25,267.5 at 7:13 a.m. IST, pointing to a muted start after the Nifty 50 closed Thursday at 25,299.35.

Foreign investors bought a net 78.31 billion rupees ($832.71 million) of Indian equities on Thursday, their ninth straight session of net buying. November inflows have reached $8 billion, the largest monthly total since December 2020, and the indexes are up 1.1% this week.

Pressure comes from oil and inflation. Brent traded near $95.23 a barrel, up from $92 at Thursday's Indian market close, as attacks on Saudi energy facilities and shipping risks in the Strait of Hormuz intensified. India's retail inflation rose to 6.09% in October, above the Reserve Bank of India's 6% upper tolerance.

why it matters

The inflows support a market that has lagged emerging-market peers for nearly two years, but higher crude and inflation raise expectations of further monetary tightening, which could cap gains. Reuters also reported that SVF II Meerkat, a SoftBank affiliate, may sell a 1% stake in Meesho in a block deal worth about 11.74 billion rupees.

market impact

Indian stocks: foreign inflows support the market, while costlier oil and inflation weigh on sentiment

• ↔Indian stocks mixed — foreign investor buying supports prices, but higher oil and inflation pressure sentiment
• ▲Brent pressure up — attacks on Saudi energy infrastructure and shipping risks in the Strait of Hormuz tighten supply

instruments