Indian stock markets were expected to open higher on Wednesday, November 11, after a holiday break, supported by softer crude oil prices and renewed buying by foreign investors. The positive outlook comes as global investors reassess their exposure to artificial intelligence-linked stocks and redirect funds towards other emerging markets, including India.
GIFT Nifty futures stood at 25,334 as of 7:41 am IST, indicating a positive start for the benchmark Nifty 50. The index had closed at 25,044.65 on Monday, marking its highest closing level in more than eight months. Domestic markets remained closed on Tuesday for Diwali.
Brent crude futures fell to a two-month low of $89.16 per barrel on Tuesday after US officials played down the possibility of additional military action against Iran. The development eased concerns about potential disruptions to oil supplies.
However, crude prices recovered slightly on Wednesday, rising 0.5% to $92 per barrel.
Lower oil prices have provided some relief to India, which depends heavily on imports to meet its energy requirements. A decline in crude prices can help reduce import costs and ease pressure on the rupee.
Foreign portfolio investors (FPIs) have also returned to Indian equities after a prolonged selling period. They have purchased Indian shares worth $5.68 billion so far in November, marking their biggest monthly investment since September 2024.
The Nifty 50 and BSE Sensex have gained nearly 9% this month, supported by easing crude prices, strong domestic earnings and a selloff in global chipmakers.
Despite the positive outlook for Indian equities, global market cues remained mixed. US Treasury yields climbed, while Wall Street stocks declined overnight after inflation data came in higher than expected.
The hotter-than-anticipated inflation reading increased expectations of a possible half-percentage-point interest rate hike by the US Federal Reserve next month.
The development could influence global investment flows and investor appetite for emerging-market equities.
Also Read: US Stock Market Today: Wall Street Futures Mixed Ahead of Key CPI Inflation Report
Several companies are likely to remain in focus following key business developments. Blackstone has agreed to acquire approximately 16% of IIFL Finance for Rs 5,000 crore, or around $535 million, as part of a $682.9 million fundraising exercise by the non-bank lender.
Tyre manufacturer MRF reported a nearly 28% decline in quarterly profit as higher raw material costs outweighed strong demand for its products. Meanwhile, Kalyan Jewellers India reported a 64% increase in second-quarter profit, while its revenue rose 31.4%.
Investors will track these developments alongside crude oil movements, foreign fund flows and global interest rate expectations as domestic markets resume trading after the Diwali holiday.