Indian stocks seen opening lower as oil climbs and Jio's debut nears

what happened

According to Reuters, GIFT Nifty futures pointed to a weaker start for the Nifty 50, trading at 22,593 early in the session against Tuesday's close of 22,749.75. Traders are reacting to crude, which rose 1.6% to $115.7 a barrel after an attack on a refinery in Saudi Arabia raised fears of supply disruption and higher inflation.

Attention is also on the Federal Reserve, which is widely expected to keep rates unchanged, though its remarks on energy-driven price pressures and the policy outlook will be key. Jio Platforms, the telecom and digital unit of Mukesh Ambani's Reliance group, is set to list after a $3.2 billion IPO that drew $77 billion in bids, the most subscribed offering in India. Overseas investors added a net 42.40 billion rupees of local stocks on Tuesday, their biggest daily purchase in almost two months, while domestic institutions sold 12.50 billion rupees.

why it matters

Higher oil prices raise India's energy import bill and feed inflation expectations, so the Fed's tone on energy-driven inflation matters for emerging markets as well. Jio's listing, which is set to become the country's fourth-largest company by market value, could attract fund flows and shift sentiment toward large Indian names.

market impact

Indian equities: costlier oil and inflation worries pressure the Nifty 50 at the open.

• ▼Nifty 50 pressure down — higher oil prices and cautious risk appetite weigh on the open
• ▲Brent pressure up — refinery attack in Saudi Arabia renews concerns about supply disruption

tags

instruments