Indian shares set for gains on cheaper oil and solid corporate earnings

what happened

Reuters reports that Indian equities are expected to open higher on Tuesday, extending a three-day run of gains. GIFT Nifty futures stood at 23,523.5 at 8:05 a.m. IST, compared with the Nifty 50's Monday close of 23,440.8. On Monday the Nifty 50 climbed 1.7% to its strongest level in more than five weeks, while the BSE Sensex reached a peak last seen eight weeks earlier.

Brent hovered near $105 a barrel after sliding 7% in the previous session, when hopes rose that talks mediated by Qatar could bring an end to the US-Israeli conflict with Iran. Reports of a US strike on Qeshm Island, however, kept geopolitical risk elevated.

Foreign portfolio investors were net buyers on Monday to the tune of 31.15 billion rupees, while domestic institutions sold a net 3.92 billion. Among companies, Marico beat its quarterly profit forecast thanks to lower copra costs, Dr. Reddy's received tentative US FDA approval for a generic version of a new HIV prevention drug, and Granules India reported a profit rise of about 40% for the September quarter.

why it matters

Cheaper crude eases the import bill of India, one of the largest oil buyers, and can keep appetite for Indian assets intact. Enrich Money CEO Ponmudi R warned that a breakdown in negotiations or renewed weakness in global tech stocks could revive volatility.

market impact

Indian stocks: softer oil and foreign buying support the Nifty 50 and BSE Sensex

• ▲Nifty 50 pressure up — softer oil and foreign capital inflows support the index

instruments