India Stocks: Indian shares muted amid caution on inflation concerns

SML Mahindra

03/04/2023 05:22

(Adds opening levels)
       BENGALURU, April 3 (Reuters) - Indian shares were muted
on Monday, the first trading session of the financial year, amid
rising inflation concerns due to a surge in oil prices after a
surprise output cut by the OPEC+. 
    The Nifty 50 index  .NSEI  was up 0.09% at 17,378.65, as of
9:49 a.m. IST. The S&P BSE Sensex  .BSESN  rose 0.06% to
59,028.28. 
    Ten of the 13 major sectoral indexes advanced with auto
stocks  .NIFTYAUTO  rising 1% on strong March sales. SML Isuzu
 SMLI.NS  jumped over 15% after passenger vehicle sales in March
surged 167%.
    Inflation concerns soured sentiment on a sharp rise in crude
oil prices after Saudi Arabia and other oil-exporting countries
announced a surprise production cut over the weekend. 
    Analysts expect the cuts to lift oil prices by about $10 per
barrel, with Goldman Sachs raising its Brent crude forecast to
$95 per barrel by the end of 2023.   
    Besides that, the rise in crude prices is a negative for
oil-importing countries like India, where the commodity accounts
for a significant share of the country's import bill.  O/R     
    Investors are likely to tread with caution ahead of the
Reserve Bank of India's rate decision, due on April 6, said two
analysts.
    The RBI is likely to raise its main interest rate by 25
basis points on Thursday and then pause for the rest of the
year, according to a Reuters poll of economists.    
        Most Adani Group stocks declined on Monday. India's
market regulator is investigating a possible violation of
"related party" transaction rules in the conglomerate's dealings
with at least three offshore entities linked to the brother of
group founder Gautam Adani, Reuters reported, citing two people.
            



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