The Indian headline indices- Sensex and Nifty, are likely to open low on Tuesday morning on account of weak global cues. Yesterday, the oil prices surged on US decision of not exempting the countries including India from penalty for importing Iranian oil. The Indian rupee also fell to its six week low. Today, the SGX Nifty settled at 11,632.50, up by 15.50 points.Yesterday, the Sensex closed at 38,746.95, up by 101.77 points, while Nifty ended at 11,594.45, down by 1.35%. We take a look at the key factors which may drive the Sensex, Nifty today:
Crude oil prices: Brent crude futures on Monday reached near 2019 highs of $74.52. Yesterday the brent crude futures were at $74.33 per barrel at 0051 GMT, higher by 0.4 percent from their previous close. US West Texas Intermediate (WTI) crude futures were at $65.79 per barrel, up 0.4 percent from their last close, marginally below their $65.92 2019 high from Monday.
Rupee movement: On Monday, the Indian rupee closed at 69.67, down 32 paise against the US dollar . The Indian currency was trading at a six week-low on account of surge in oil prices.
FII and DII: As on April 22, while the net value of foreign institutional investors was Rs 73.08 crore, the net value of domestic institutional investors was in negative Rs 68.16 crore.
US-Iran Sanctions: The Trump administration on Monday said it would not renew exemptions granted last year to the importers of oil from Iran, when the importers were expecting a less stringent decision from US as they had pleaded with the world’s largest economy to buy Iranian oil sanction-free.
India-Iran Imports: India said Monday it is studying the implications of the US decision of not giving exemption from penalties for importing Iranian oil. The economic giant US announced its decision about the five major countries, including India, which would not be able to avail the exemptions from penalties if they continue to import oil from Iran. “We have seen the announcement by the US Secretary of State. We are studying the implications of the decision and will make a statement at an appropriate time,” sources told Reuters.