Indian shares set to open higher on falling oil prices and foreign investments

Indian shares are set to open higher on Monday, driven by a drop in crude oil prices and positive views on foreign investments. However, any major gains might be limited because investors could lock in profits after recent market increases. GIFT Nifty futures stood at 25,057.5 at 8:06 a.m. IST, pointing to a strong start for the Nifty 50 index. The Nifty 50 closed at 24,986.4 on Sunday. Both the Nifty 50 and the BSE Sensex dipped slightly during a special Diwali trading session on Sunday. This minor drop came as the market took a breather after growing for seven sessions in a row. Those seven sessions saw the benchmark indexes jump about 10.5 percent until Friday. This marked their longest winning streak of the year, fueled by heavy foreign investments due to falling oil prices and the cooling down of the global artificial intelligence trade. Foreign investors have bought Indian shares worth more than 4.1 billion dollars in November. This already makes it their biggest monthly investment total since September 2024. Meanwhile, Brent crude futures fell nearly 1 percent to 97.5 dollars per barrel. This decline happened after United States President Donald Trump stated he is very unlikely to order new attacks on Iran while peace talks continue. Across Asia, markets rose by 0.8 percent. This recovery follows a turbulent week where worries about computer chip demand caused severe drops in technology-heavy Asian markets.

Context

Stock markets often fluctuate based on global factors like crude oil prices and foreign investments. When oil prices drop, oil-importing countries like India benefit because their energy costs go down. Foreign investments also bring outside capital into the local economy, which helps push stock prices upward.