Market Update: Shares Set To Open Lower As Iran Ship Attacks Send Oil Soaring | Check Stocks To Watch

Indian shares will likely open lower on Thursday, extending the previous session's losses, as oil prices jumped on reports of fresh attacks on ships in the Strait of Hormuz and Iraqi waters, stoking inflation risks and tempering rate-cut bets.

GIFT Nifty futures were trading at 23,784.50 as of 07:58 a.m. IST, indicating the Nifty 50 will open below Wednesday's close of 23,866.85.

Oil climbed as much as 8.2% after Iraqi security officials said Iranian explosive-laden boats had struck two fuel-oil tankers, amid wider supply disruptions from the U.S.-Israeli war on Iran, adding that oil ports "have completely stopped operations."

Even the International Energy Agency's plan to release 400 million barrels from its reserves - the largest move in its history - and the U.S. pledge to contribute 172 million barrels from next week as part of the effort failed to calm markets.

Brent futures rose $6.5, or 7:13%, to $98.5 a barrel at 0200 GMT, and U.S. West Texas Intermediate (WTI) crude was up $6.1, or 7.1%, to $93.43.

The Middle East conflict has kept investors on edge as they assess its impact on inflation and the prospect of sustained pressure on global oil supplies.

Asian shares fell, tracking an overnight drop in U.S. and European markets.

Back home, the Nifty and Sensex posted sharp declines on Wednesday, and have lost about 5% each since the start of the war.

Foreign institutional investors sold Indian shares worth 59.65 billion rupees ($646.7 million) on Wednesday, while domestic investors bought 46.14 billion rupees, per provisional NSE data.

Stocks To Watch

** Mahanagar Gas said gas curtailment has impacted its supply to industrial and commercial customers

** KEC International secures new orders worth 14.76 billion rupees for transmission and distribution projects, including its largest composite T&D order in Saudi Arabia

** Wipro signs a multi-year contract with TruStage to modernise its retirement services business ($1 = 92.2390 Indian rupees)