Indian shares set to open higher on ceasefire optimism, weaker oil prices
June 24 (Reuters) - India's equity benchmark indexes are expected to open higher on Tuesday, tracking gains in broader Asian markets, after U.S. President Donald Trump announced a ceasefire agreement between Iran and Israel, pushing oil prices lower.
A drop in crude oil prices would be a relief for India, which relies heavily on imports to meet its energy needs, as higher prices can fuel inflation and widen the fiscal deficit.
The Gift Nifty futures were trading at 25,236, as of 7:50 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open above the previous close of 24,971.9.
Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that prompted fears of further escalation in the war-torn region and briefly pushed oil prices to a five-month high on Monday.
Following the ceasefire announcement, oil prices dived to a one-week low, and MSCI Asia ex Japan (.MIAPJ0000PUS), opens new tab climbed more than 1.5%.
The benchmark Nifty and Sensex (.BSESN), opens new tab indexes slipped about 0.6% each on Monday, pressured by foreign investor selling amid rising tensions in the Middle East.
Despite the market uncertainty, the 50-stock index has gained about 1% in June, poised for a fourth consecutive monthly gain, on central bank's easing policy measures and strong domestic growth prospects.
** Cochin Shipyard says its subsidiary got an order valued between 1 billion rupees ($11.55 million) and 2.5 billion rupees for construction of two luxury river cruise vessels.
** HG Infra Engineering declared lowest bidder for an order worth 1.18 billion rupees in Maharashtra.
($1 = 86.5600 Indian rupees)
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