Business Recorder
India’s equity benchmarks are likely to open lower on Thursday, as Brent Crude prices topped $100 a barrel, after Iran seized two ships in the Strait of Hormuz, and with no signs of peace talks restarting. GIFT Nifty futures were trading at 24,158 points, as of 8:02 a.m. IST, indicating that the benchmark Nifty 50 would open below Wednesday’s close of 24,378.1. Brent Crude prices rose for the fourth consecutive session to $102 per barrel amid uncertainty over peace talks in the Middle East. Global brokerage firm HSBC downgraded Indian equities to “underweight” from “neutral”, citing the country’s reliance on imported energy and potential knock-on effects on inflation and domestic demand. India imports a bulk of its crude and gas requirements, and a prolonged spike in prices could worsen the growth and inflation outlook for the economy. Foreign investors sold Indian shares worth 20.78 billion rupees ($221.56 million) on Wednesday, as per provisional data. This was their second consecutive session of selling, after earlier turning buyers for four sessions. Meanwhile, investors will react to earnings from benchmark Nifty 50 constituents SBI Life Insurance and apparel retailer Trent. SBI Life Insurance’s net profit declined marginally during January-March, due to a one-third rise in operating expenses. Trent posted a 26% jump in quarterly profit, as demand ticked up following last year’s consumption tax cuts, with its board also approving a maiden bonus share issue and a fund raise of up to 25 billion rupees.
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