Asian Shares Mixed As Oil Eases; Indian Shares Likely To Open Cautiously

Mumbai, May 13:Global markets traded cautiously as investors weighed softer oil prices against lingering macro and geopolitical risks, keeping sentiment fragile across Asia, the US and Europe and pointing to a measured start for Indian equities.

Oil Eases

Oil prices eased but remained elevated, as optimism around a potential Iran ceasefire and diplomatic developments tempered some of the recent supply-risk premium. However, crude stayed well supported by ongoing uncertainty in the Middle East. Still-firm energy prices kept inflation concerns in focus.

Asia Mixed

Asian markets came under pressure on Wednesday, with the MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.5% as investors reacted to hotter-than-expected US inflation and escalating Middle East risks. South Korean shares were up 1.5%. Japan’s Nikkei also edged up whereas Hong Kong’s Hang Seng edged down. Sentiment was mixed by concerns that elevated oil prices and persistent Strait of Hormuz disruptions could keep inflation sticky and delay rate cuts from the US Federal Reserve.

America Lower

Wall Street ended lower overnight, with the S&P 500 and Nasdaq retreating from recent highs as inflation data reinforced expectations that the Fed will stay cautious on policy easing. Technology stocks led declines, particularly semiconductors, while market breadth was negative. Rising energy costs tied to Middle East tensions added to inflation worries, pushing investors to reassess the near-term rate outlook.

Europe Weak

European equities also weakened, with the pan-European STOXX 600 falling amid fading hopes for a swift resolution to the US-Iran standoff. Energy disruptions and oil strength weighed on risk appetite, while technology shares tracked US chip-sector losses. The broader mood reflected concerns that higher oil prices could sustain inflationary pressure and keep interest rates elevated for longer.

What This Means for India:

The combination of softer global equities, firm oil prices, and a stronger dollar points to a cautious start for Indian markets. Elevated crude is particularly relevant for India, given its dependence on oil imports; sustained energy strength could pressure the fiscal and current account outlook while feeding inflation concerns. Meanwhile, continued strength in the US dollar may weigh on emerging market currencies, including the rupee.

However, select support could come from any stabilisation in global inflation prints or signs of de-escalation in geopolitical tensions.

Overall, Indian equities are likely to track global cues closely at the open. Volatility may remain elevated, but sectoral moves will likely hinge on how commodity and currency trends evolve through the session.

Source:

• Exchanges