Indian stock markets set to open higher following lower oil prices and foreign investments

Indian shares are set to open higher on Wednesday after a holiday break, driven by a big drop in crude oil prices and strong money inflows from foreign investors. GIFT Nifty futures stood at 25,334 early in the morning, pointing to a positive start for the benchmark Nifty 50 index, which closed at an eight-month high of 25,044.65 on Monday. Indian markets remained closed on Tuesday for Diwali.

Market Movers

Brent crude oil prices dropped to a two-month low of $89.16 per barrel on Tuesday after United States officials played down the need for more military action against Iran, which calmed fears of supply problems. Prices ticked up slightly to $92 on Wednesday. Both the Nifty 50 and the BSE Sensex have jumped nearly 9% this month. This growth comes as falling oil prices, good local company earnings, and a selloff in global chipmaker shares pulled foreign portfolio investors back into the Indian market. Foreign investors bought Indian shares worth $5.68 billion in November, marking their biggest monthly buy since September 2024.

Corporate News

Private equity firm Blackstone plans to buy about a 16% stake in IIFL Finance for 50 billion rupees, which is about $535 million, as part of a larger $682.9 million fundraise by the non-bank lender. Tyre maker MRF posted a nearly 28% drop in its quarterly profit because higher costs for raw materials ate into the gains from strong tyre demand. Meanwhile, Kalyan Jewellers India reported a 64% jump in second-quarter profit alongside a 31.4% rise in revenue.

Global Cues

Across the globe, United States Treasury yields jumped and Wall Street stocks fell overnight after higher-than-expected inflation data raised the chances of a half-percentage-point interest rate hike by the Federal Reserve next month.

Context

Foreign fund flows and global crude oil prices play a massive role in shaping daily movements on Indian stock exchanges. When oil prices drop, it helps ease inflation pressures and reduces import costs for a major oil-importing country like India.