India's equity benchmarks are expected to open lower on Thursday, with GIFT Nifty futures trading at 24,158 points as of 8:20 am, indicating the benchmark Nifty 50 would open below Wednesday's close of 24,378.1 points. According to The Hindu BusinessLine, this decline comes amid rising crude oil prices and geopolitical tensions in the Middle East, while Nifty 23,897.95-275.1 points as per The Economic Times.
Brent Crude prices rose for the fourth consecutive session to $102 per barrel, as reported by The Hindu BusinessLine. The surge was triggered by Iran's seizure of two ships in the Strait of Hormuz, with no signs of peace talks restarting. Brent crude futures slipped 15 cents to $101.76 per barrel on Thursday, after closing above $100 on Wednesday for the first time in over two weeks, according to The Economic Times. West Texas Intermediate futures also edged lower by 14 cents to $92.82. This prolonged spike in crude prices could significantly impact India's growth and inflation outlook, as the country imports a bulk of its crude and gas requirements.
Despite U.S. President Donald Trump extending a ceasefire following mediation efforts by Pakistan, tensions remain unresolved as both countries continue to restrict trade flows through the Strait of Hormuz. Iran and the U.S. are still limiting vessel movement through the critical route that previously handled about 20% of global oil and LNG flows before the conflict began in late February with U.S. and Israeli strikes on Iran. Iranian parliament speaker and lead negotiator Mohammad Baqer Qalibaf stated that a full ceasefire would only be meaningful if the blockade is lifted, as reported by The Economic Times. The U.S. has continued its naval blockade on Iranian trade, while Iran seized two ships in the strait on Wednesday, tightening control over the passage.
In a significant move to enhance market efficiency, Sebi has introduced a framework allowing net settlement of funds for foreign portfolio investors in the cash market. Currently, FPIs must settle trades on a gross basis at the custodian level, even though custodians themselves net their obligations with clearing corporations. The new framework permits netting of funds for 'outright transactions'—defined as transactions involving either only purchases or only sales in a security within a settlement cycle. However, transactions involving both buy and sell positions in the same security during a settlement cycle will continue to be settled on a gross basis, with excess sale proceeds from outright trades unable to offset obligations from non-outright transactions.
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. As reported by The Hindu BusinessLine, this downgrade reflects concerns about the impact of sustained high crude prices on India's economic outlook.
Foreign investors sold Indian shares worth ₹2,078 crore on Wednesday, marking their second consecutive session of selling after earlier turning buyers for four sessions. According to provisional data reported by The Hindu BusinessLine, this continued selling pressure adds to market concerns about foreign investor sentiment amid the rising crude oil prices.
