Indian markets seen lower as Brent gains and inflation worries
Looks like Indian stock markets are in for a dip this Thursday, thanks to surging oil prices and fresh inflation worries.
Brent crude futures were up 1.3% at $110.3 per barrel after attacks in Saudi Arabia led to some tense moments, including the United States ordered some diplomats and family members to leave its missions in the kingdom.
Early trading hints at a negative open for the Nifty 50, which already closed lower on Wednesday.
India's central bank hints rate hikes
India relies heavily on imported oil, so when global prices spike, it hits the economy hard: think higher inflation and bigger fiscal deficits.
The central bank is hinting at possible interest rate hikes to keep things under control, but they're being careful not to slow down growth too much.
Nifty 50 and BSE Sensex have shed 1.5% and 1.4%, respectively, this week.
Foreign investors bought ₹10.22bn Indian shares
Despite all the market jitters, foreign investors aren't backing off, they bought ₹10.22 billion worth of Indian shares on Wednesday alone.
It's their second big buying day in three sessions, showing that global players still have faith in India's long-term story even with all the short-term bumps.