Lower Oil Prices Lift Indian Shares at Open

Indian shares are set to open higher Tuesday, supported by lower oil prices and resilient domestic macro data. Optimism for the upcoming corporate earnings season also boosted sentiment.

Oil prices have eased in recent sessions. Brent crude traded near $72 a barrel. For India, the world's third-largest oil consumer, lower crude costs reduce the import bill and improve the trade balance. The country imports about 85% of its oil needs. A sustained drop in oil prices would also help contain inflation and support the rupee, traders said.

Domestic macro indicators have held up well. Recent readings on manufacturing and services activity remained in expansion territory. Industrial production data also pointed to steady demand. These factors have kept underlying sentiment resilient despite mixed cues from global markets.

The earnings season is expected to provide further direction. Companies in sectors like information technology and banking are likely to report strong quarterly numbers. Consumer goods companies are also expected to perform well. TCS reports results on Thursday, the first major release of the season.

Global markets were mixed overnight. Wall Street ended lower on concerns over interest rates, while Asian markets traded cautiously. Indian shares, however, appeared to decouple. Futures pointed to a positive open.

Foreign portfolio investors have been net buyers of Indian equities this month, according to exchange data. The rupee also strengthened in early trade, reflecting the positive sentiment.

Lower oil prices benefit sectors like aviation and paints, which have high input costs. The broader commodities outlook remains a key variable for Indian equities.

Futures pointed to the Nifty 50 opening above the 22,500 mark.