Indian stocks set to slip after US attack on Iran's nuclear sites
The Gift Nifty futures were trading at 25,008, as of 7:51 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open below the previous close of 25,112.4.
The U.S. attacked key Iranian nuclear sites over the weekend, joining Israel in the biggest Western military action against the Islamic Republic since the 1979 revolution.
Most Asian stocks were lower on the day, with MSCI Asia ex Japan (.MIAPJ0000PUS), opens new tab down more than 1%, while the oil prices briefly hit a five-month high.
The concerns that Iran may shut the Strait of Hormuz, through which around 20% of global oil and gas flows, triggered fears of a supply disruption.
Goldman Sachs flagged risks to global energy supply amid the concerns, and said it would lead to significant spikes in oil and natural gas prices.
Higher crude oil prices do not bode well for India, which relies on imports for its energy requirement, as they may fuel inflation and raise the government's fiscal deficit.
The surge in oil prices could also be detrimental to corporate earnings growth as they could raise input costs.
India's benchmark indexes rose about 1.6% last week, driven by gains in financials.
** Information technology companies (.NIFTYIT), opens new tab will be in focus due to concerns over persistent weakness in technology spending as global software major Accenture (ACN.N), opens new tab posted third consecutive quarter of yearly decline in outsourcing orders
** Bharat Electronics (BAJE.NS), opens new tab gets orders worth 5.85 billion rupees ($67.6 million) for fire control and sighting system for missiles, communication equipment, jammers, spares, and services
($1 = 86.5600 Indian rupees)
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