Indian stocks set to slip after US attack on Iran's nuclear sites

India's shares are set to open lower on Monday, in line with Asian peers, as investors anxiously wait to see if Iran retaliates after the US attacked its key nuclear sites.

The Gift Nifty futures were trading at 25,008, as of 7:51 am IST, indicating that the Nifty 50 will open below the previous close of 25,112.4.

The US attacked key Iranian nuclear sites over the weekend, joining Israel in the biggest Western military action against the Islamic Republic since the 1979 revolution.

Most Asian stocks were lower on the day, with MSCI Asia ex Japan down more than 1 per cent, while the oil prices briefly hit a five-month high.

The concerns that Iran may shut the Strait of Hormuz, through which around 20 per cent of global oil and gas flows, triggered fears of a supply disruption.

Goldman Sachs flagged risks to global energy supply amid the concerns, and said it would lead to significant spikes in oil and natural gas prices.

Higher crude oil prices do not bode well for India, which relies on imports for its energy requirement, as they may fuel inflation and raise the government's fiscal deficit.

The surge in oil prices could also be detrimental to corporate earnings growth as they could raise input costs.

India's benchmark indexes rose about 1.6 per cent last week, driven by gains in financials.

Stocks to watch

• Information technology companies will be in focus due to concerns over persistent weakness in technology spending as global software major Accenture posted third consecutive quarter of yearly decline in outsourcing orders.

• Bharat Electronics gets orders worth 5.85 billion rupees ($67.6 million) for fire control and sighting system for missiles, communication equipment, jammers, spares, and services.