Indian shares to open muted as Mideast conflict keeps oil above $100

Sept 10 (Reuters) - Indian shares are likely to be subdued in early trade on Thursday, as an intensifying Middle East conflict kept crude prices above the $100 per barrel mark, while investors awaited key U.S. data before the Federal Reserve's policy next week.

GIFT Nifty futures were at 23,489.50 points as of 7:44 a.m. IST, indicating a muted start for the Nifty 50 index (.NSEI), opens new tab, which closed at 23,431.5 on Wednesday.

The Nifty and Sensex (.BSESN), opens new tab settled at three-month lows in the previous session as Brent surpassed $100. They have fallen ⁠in seven out of the last eight sessions, giving up about 3.1% each.

Iran said it attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers in the largest attacks on shipping in the six-month-old conflict.

Higher oil prices are detrimental for India, the world's third-largest importer of the commodity, as they increase the import bill, worsen inflationary pressures and weigh on economic growth and corporate profitability.

"Costlier crude will squeeze margins in oil-sensitive sectors such ⁠as aviation, paints, tyres, chemicals, logistics and parts of FMCG," said Rajeev Sharan, head of research at Brickwork Ratings.

"Dearer oil also adds to inflation risk and strengthens the case for the U.S. Fed to sound hawkish, or even hike interest rates on September ⁠16."

Foreign portfolio outflows from Indian markets stood at 5.83 billion rupees ($61.3 million) on Wednesday, while domestic institutional investors bought shares worth 15.09 billion rupees, according to provisional data from the ⁠NSE.

STOCKS TO WATCH

** Hindustan Zinc (HZNC.NS), opens new tab signs six-year transportation pact with MFL India for the deployment of 30 electric trucks

** Wipro (WIPR.NS), opens new tab and CrowdStrike launch CISO command centre to ⁠transform enterprise cybersecurity operations

** Coal India's (COAL.NS), opens new tab subsidiary Northern Coalfields posts a pick-up in production and dispatches as monsoon recedes

** Shakti Pumps (SHPU.NS), opens new tab secures orders worth 2.36 billion rupees

($1 = 95.1000 Indian rupees)

Reporting by Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala

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