Indian shares set to extend advance on softer oil, steady earnings

Nov 3 (Reuters) - Indian shares are expected to open higher on Tuesday, building on three sessions of gains, as strong company earnings, easing crude oil prices and early signs of foreign investors returning to India aid investor sentiment.

GIFT Nifty futures were at 23,523.5 as of 8:05 a.m. IST, indicating a positive start for the benchmark Nifty 50 (.NSEI), opens new tab, which closed at 23,440.8 on Monday.

The Nifty 50 and BSE Sensex (.BSESN), opens new tab jumped 1.7% on Monday to their highest levels in over five weeks ⁠and eight weeks, respectively.

Brent crude traded flat at about $105 a barrel after dropping 7% in the previous session as talks between Iran and Qatari mediators lifted hopes for an end to the US-Israeli war with Iran.

However, reports that the US had struck Iran's Qeshm Island kept the tensions elevated.

Foreign portfolio investors were net buyers in Indian markets on Monday, with inflows of 31.15 billion Indian rupees, while domestic institutional investors sold off shares worth a net 3.92 ⁠billion rupees, as per provisional data from the NSE.

"A sustained de-escalation in geopolitical tensions and further moderation in energy prices could support the ongoing recovery," said Ponmudi R, CEO of brokerage Enrich Money.

"However, a breakdown in negotiations or continued ⁠weakness in global technology stocks could revive volatility."

Among stocks, Marico (MRCO.NS), opens new tab will be in focus after beating its quarterly profit view on lower copra costs and healthy demand.

Dr. Reddy's (REDY.NS), opens new tab ⁠said that the US FDA has tentatively approved a generic version of a new and highly effective HIV prevention drug.

Granules India (GRAN.NS), opens new tab posted about a ⁠40% rise in September quarter profit as new product launches and strong sales of its main medicines in key overseas markets outweighed higher production costs.

Reporting by Bharath Rajeswaran in Bengaluru; Editing by Ronojoy Mazumdar