Indian equity markets were set for a subdued opening on Tuesday as investors weighed higher domestic inflation, expensive crude oil and continuing geopolitical tensions. GIFT Nifty futures indicated a cautious start, while the Nifty 50 had closed the previous session at 22,363.35.
India’s retail inflation accelerated to 5.54% in September, moving closer to the Reserve Bank of India’s upper tolerance limit of 6%. Persistent increases in food and energy costs could complicate the outlook for interest rates and borrowing expenses. Foreign investors also continued to reduce their equity holdings, adding pressure to market sentiment.
Investors will monitor the September-quarter earnings season, currency movements and developments in the Middle East for direction.
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