Why are Indian shares expected to open higher despite rising oil prices?

Indian shares are expected to open higher because a weaker-than-expected U.S. jobs report eased fears of a near-term Federal Reserve rate hike, which is positive for foreign fund flows into emerging markets; although rising crude prices — up 1.1% to $84.50 a barrel due to Strait of Hormuz uncertainty and a Saudi oil facility attack — weighed on sentiment, the dominant driver was the reduced likelihood of aggressive U.S. monetary tightening.

What domestic and global factors are limiting the upside potential of Indian equities this week?

Gains in Indian equities are being capped by three key factors: rising crude prices heightening inflation and growth risks for oil-import-dependent India; volatility introduced by a new closing-auction mechanism for stocks with linked derivatives; and concerns over the Reserve Bank of India’s draft proposal to curb flexible loans offered by non-bank lenders.

Indian shares set to gain as soft US jobs data offsets oil worries

Aug 9, 2026

Indian equities are poised to rise following softer US jobs data, despite Brent crude volatility and geopolitical tensions. Corporate highlights include Oil India's profit surge linked to higher crude prices and Dr. Reddy's terminating its distribution pact with Novartis India.

reuters

2026-08-09

Indian shares set to gain as soft US jobs data offsets oil worries

Indian shares set to gain as soft US jobs data offsets oil worries

FAQ