Indian Shares Set For Muted Open As Oil Surges Amid Hormuz Risks
(RTTNews) - Indian shares are seen opening little changed on Tuesday amid a lack of any breakthrough in West Asia talks.
As oil prices extend their surge and inflation worries mount, investors also await cues from key U.S. inflation readings due this week.
Benchmark indexes Sensex and Nifty ended a lackluster session marginally higher on Monday while the rupee settled 11 paise lower at 95.28 against the U.S. dollar.
Foreign institutional investors net bought shares worth Rs 1,974.76 crore on Monday, while domestic institutional investors net sold shares to the extent of Rs 1,290.29 crore, according to provisional exchange data.
Asian stocks were mixed in lackluster trade this morning, with Japanese markets closed for a holiday.
The U.S. dollar held gains from the previous session while gold traded at $4,427 an ounce, climbing for the third straight day and hitting over a two-month high on receding Fed hike bets and reports suggesting that China's central bank stepped up gold purchases in July.
Brent crude futures held steady near $88 a barrel after rising for four consecutive sessions.
Overnight, U.S. stocks ended a choppy session slightly lower as oil prices surged nearly 5 percent on growing doubts over a near-term agreement to reopen the Strait of Hormuz.
Iran said a pact with Oman to establish a shipping route through the critical waterway was "very close," while rejecting direct negotiations with Washington until several conditions are met.
U.S. President Donald Trump said the U.S. is semi-negotiating with Iran and wants Iran to remain under economic pressure.
After Tehran sought financial compensation over damages incurred during the U.S.-Israeli military operations in the country, Trump said he has instructed American representatives to firmly include compensation demands from Iran in any future negotiations, complicating efforts to reopen the crucial waterway.
The Dow and the S&P 500 both slipped around 0.1 percent while the tech-heavy Nasdaq Composite shed 0.3 percent.
European stocks ended little changed near a record high on Monday after a fresh uptick in crude oil prices and ahead of a busy week packed with crucial economic data.
The pan-European STOXX 600 ended flat with a positive bias. The German DAX and France's CAC 40 both finished marginally higher while the U.K.'s FTSE 100 dipped 0.4 percent.
