Indian Stocks: Shares Set to Open Higher After Diwali Break

Indian shares were expected to open higher on Wednesday following a one-day holiday break, supported by a sharp decline in crude oil prices and strong foreign fund inflows.

GIFT Nifty futures stood at 25,334 as of 7:41 a.m. Indian Standard Time (IST), signalling a positive start for the benchmark Nifty 50. The index closed at 25,044.65 on Monday, its highest closing level in more than eight months. Indian stock 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 prospect of further military action against Iran, easing concerns about potential supply disruptions. Prices recovered by 0.5% to around $92 per barrel on Wednesday.

The Nifty 50 and BSE Sensex have gained nearly 9% so far this month, supported by easing crude oil prices, strong domestic corporate earnings and a selloff in global chipmakers that helped attract foreign portfolio investors (FPIs) back to Indian equities.

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FPIs have purchased Indian shares worth $5.68 billion so far in November, putting them on track for their largest monthly net buying since September 2024.

Meanwhile, US Treasury yields rose and Wall Street stocks declined overnight after stronger-than-expected inflation data increased market expectations of a potential half-percentage-point Federal Reserve interest-rate hike next month.