Why are Indian shares expected to open lower on Tuesday, according to the news?

Indian shares are likely to open lower due to persistent anxiety around the three-month-old war between the U.S. and Iran, which has stalled peace talks, pushed Brent crude futures to around $94 per barrel, raised inflation concerns, triggered unprecedented foreign fund outflows—including ₹39.12 billion ($411.83 million) sold on Monday—and compounded by India's forecast of the weakest monsoon in 11 years, threatening crops, food prices, and economic growth.

What is the scale of foreign investor outflows from Indian equities in 2026 so far, and how does it compare to the previous year's record?

Foreign investors have offloaded $26.4 billion worth of Indian shares in 2026 so far, already surpassing 2025’s record annual outflow of $18.91 billion.

Indian Shares Likely to Open Lower as Iran War, Fund Outflows Weigh

Jun 1, 2026

Indian equities face downward pressure amid rising oil prices linked to Middle East tensions and poor monsoon forecasts affecting crop yields. Significant foreign outflows and inflation risks may prompt interest rate adjustments by the Reserve Bank of India.

reuters

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