India Stocks: Indian shares likely to open muted as US rate hike bets offset oil relief

Wipro

Wed 03:33

    June 24 (Reuters) - Indian shares are likely to open little changed on Wednesday, as a fall in crude prices amid U.S.-Iran peace negotiations is tempered by growing expectations of tighter Federal Reserve policy.
GIFT Nifty futures GIFc1 were at 23,861.50 as of 7:58 a.m. IST, indicating the Nifty 50 .NSEI could open near the close of 23,824.10 points on Tuesday, when Indian blue-chips fell about 1.2%, dragged by heavyweight IT and metal stocks. 
Shares had gained more than 4% in the previous seven sessions through Monday, as the Middle East peace talks pushed down crude oil prices, improving the growth and inflation outlook for the world's No. 3 oil importer and consumer.
Wall Street equities fell overnight as a broad selloff in technology and semiconductor shares, profit-taking after a prolonged rally, and expectations of a more hawkish Fed weighed. MKTS/GLOB
Asian markets .MIAPJ0000PUS rose 0.4% after losing about 3.8% in the previous session. 
Higher U.S. interest rates dent the relative appeal of emerging markets such as India for foreign investors and could cloud the growth outlook in the world's largest economy, weighing on sectors exposed to the United States.
Brent crude futures LCOc1 fell 0.5%, trading near four-month lows, on signs that more oil tankers stranded in the Gulf since the start of the Iran war are set to move out of the Strait of Hormuz. O/R
Foreign portfolio investors net bought Indian shares worth 178.6 million rupees ($1.9 million) on Tuesday, while domestic institutional investors purchased stocks worth 6.80 billion rupees.
Lower crude prices, along with measures to stabilise the rupee and boost foreign inflows, have helped moderate overseas selling over the past two weeks, two traders said. 
A revival in monsoon showers and improving earnings could also lure back global investors, who have sold a record $29.84 billion worth of Indian equities so far this year, they said.

STOCKS TO WATCH
** Indian government says it will divest up to a 2% stake in Indian Railway Finance Corp INID.NS via an offer for sale
** Wipro WIPR.NS expands partnership with cybersecurity firm Palo Alto; company also extends timeline to buy Alpha Net Consulting to September 30 from the initial June 30 target
** NLC India NLCI.NS signs a strategic pact with Indian Oil Corporation IOC.NS to establish a joint venture to develop large-scale renewable energy power plants across Tamil Nadu





($1 = 94.7350 Indian rupees)

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