India Stocks: Indian shares likely to rebound after recent slide; higher oil prices to cap upside

ExlService Holdings

03/09/2026 03:36

Sept 3 (Reuters) - Indian shares are likely to stage a partial rebound at the open on Thursday, after three consecutive sessions of losses, though the recovery is likely to remain fragile due to elevated oil prices and renewed Middle East tensions.
GIFT Nifty futures GIFc1 were at 24,094 points as of 8:00 a.m. IST, indicating a positive start for the Nifty 50 index .NSEI, which closed at 23,914.45 on Wednesday.
The Nifty and the Sensex .BSESN have each fallen about 1% over the past three sessions, pressured by climbing crude prices and a rise in global bond yields as investors reassessed the prospect of interest rates staying higher for longer.
"While investor sentiment has deteriorated after escalating tensions in the Middle East, the sharp decline has pushed the benchmarks closer to downside targets, with Nifty likely to find resistance near 24,000 levels," said Ajit Mishra, senior vice president of research at Religare Broking.
Brent crude LCOc1 was little changed on Thursday, after U.S. President Donald Trump said the latest attacks on Iran would be short-lived, raising hopes of renewed Middle East hostilities easing. However, Brent traded at an elevated $96 per barrel, with markets assessing the impact of the renewed hostilities on energy supplies.
Persistently high oil prices are a particular concern for India, a major crude importer, as they can worsen inflation and strain the current account. O/R
Other Asian markets opened higher, ahead of the crucial U.S. payrolls report that could influence the future rate trajectory, while comments from Federal Reserve Bank of New York President John Williams tempered expectations of a hike this month. MKTS/GLOB
Foreign institutional investors' inflows in Indian markets stood at 66.88 billion rupees on Wednesday, while domestic institutional investors purchased shares worth 28.13 billion rupees, according to NSE's provisional data.

STOCKS TO WATCH

** IT services firm Hexaware HEXW.NS appoints Vivek Jetley, a senior executive at Nasdaq-listed EXL EXLS.O, as CEO.
** MSCI to remove Swiggy SWIG.NS from its global standard and Mid-cap indexes effective September 7.
** Inox Wind INWN.NS secures repeat turnkey order from Indian Oil Corporation, with a contract value of 7.55 billion rupees.

   

 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))