Indian shares set to open higher as US pushes Iran ceasefire plan
Indian shares are poised to extend gains on Wednesday after reports the U.S. is seeking a month-long ceasefire in its war with Iran and has presented Tehran with a 15-point plan, raising hopes that the weeks-long conflict may ease.
GIFT Nifty futures were trading at 23,095, as of 8:03 a.m. IST, indicating that the benchmark Nifty 50 may open higher than Tuesday's close of 22,912.40.
Asian equities rose 1.9%, while oil slipped to $98 a barrel on expectations that any move toward a ceasefire could ease supply disruptions. The optimism followed reports that Washington had delivered the 15-point proposal to Tehran aimed at ending the conflict. [O/R]
U.S. President Donald Trump said on Tuesday that Washington was making progress toward negotiating an end to the war, and a source confirmed the delivery of the settlement proposal to Tehran, Reuters reported.[MKTS/GLOB]
Iran, however, has denied that direct talks are underway.
Markets remained cautious as strikes by the U.S., Israel and Iran continued, and Reuters reported, citing sources, that Washington is preparing to deploy thousands of troops to the Middle East.
"While reports of potential negotiations between Iran and the U.S. have provided some relief to markets, it is likely to be conditional on incoming news flow and official commentary from both sides," said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
"Any meaningful de-escalation could provide a more sustained positive impact on market sentiment."
Indian benchmark indexes have fallen around 9% each so far this month as elevated crude prices and energy-supply concerns have triggered heavy foreign selling and clouded the economic outlook.
Foreign portfolio investors have offloaded Indian shares worth $11.37 billion in March so far, putting markers on track for record monthly outflows.
STOCKS TO WATCH
** A consortium comprising Aditya Birla Group, Times of India Group, Bolt Ventures and Blackstone says it would acquire IPL franchise Royal Challengers Bengaluru for $1.78 billion from United Spirits
** Ceigall India reports cancellation of two tenders worth 2.97 billion rupees ($31.6 million) by the Punjab government due to administrative reasons
** Waaree Energies approves 39 billion-rupee capex for glass manufacturing plant
** Brewers operating in India warn of price rises and supply disruptions as a shortage of gas due to Iran war drives up the cost of glass bottles and shipping delays hit imports of aluminium needed by can makers
($1 = 93.8930 Indian rupees)
