Indian shares set to open lower as US-Iran tensions lift oil prices

Indian shares were set to open lower on Wednesday, as renewed U.S.-Iran tensions hit global risk appetite and ​lifted crude oil prices, a key risk for the world’s third-largest oil importer. GIFT ‌Nifty futures were trading at 24,235 as of 8:00 a.m. IST, signalling that the Nifty 50 could open below Tuesday’s close of 24,398.7. Asian markets fell after an overnight drop on Wall Street, while Brent ​crude rose 2% to about $76 a barrel, extending a 3% gain from the ​previous session, after the U.S. military launched a series of strikes against Iran. Washington ⁠said Tehran had attacked three commercial vessels in the Strait of Hormuz, a vital ​route for global oil shipments. The flare-up raised fresh concerns about regional stability and possible supply ​disruption. Higher oil prices are a headwind for oil-importing countries such as India because they can lift the import bill, fuel inflation, slow growth and squeeze company margins. The Nifty 50 and the Sensex snapped a four-session ​winning streak on Tuesday, as investors booked profits after a rally driven by optimism ​over lower crude prices following a preliminary U.S.-Iran peace deal. The latest flare-up could dent investor sentiment further, ‌trigger a ⁠risk-off move and prompt additional profit-taking, two analysts said. Technology stocks will also be in focus after a Reuters report said Chinese AI startup DeepSeek was developing its own chip, potentially reducing reliance on major global chipmakers. The Nifty IT index, up 6.2% so far in July, ​will be watched ahead ​of Tata Consultancy ⁠Services’ quarterly results on Thursday. Foreign institutional investors bought Indian shares worth 3.93 billion rupees ($41.4 million) on Tuesday, while domestic institutional investors sold shares ​worth 3.83 billion rupees.