Indian shares set to open higher on hopes for renewed US-Iran talks
Indian shares are set to open higher on Wednesday, tracking other Asian peers, after oil prices dropped below $100 a barrel on rising expectations for renewed U.S.-Iran peace negotiations.
GIFT Nifty futures were trading at 24,228 as of 7:34 a.m. IST, indicating that the benchmark Nifty 50 will open about 1.6% above Monday's close of 23,842.65.
Domestic markets were closed on Tuesday for a public holiday.
Other Asian markets gained 1.7%, while Wall Street equities advanced overnight after U.S. President Donald Trump said talks with Iran could resume in Pakistan over the next two days, after breaking down last weekend. [MKTS/GLOB]
Pakistani and Iranian officials also said negotiations could restart, sending Brent crude prices lower and bolstering expectations of a de-escalation in the Iran war. [O/R]
The Nifty 50 and Sensex are down about 5.3% each since the start of the war on February 28, as higher oil prices and energy supply worries dampened the economic and earnings outlook of the world's third-largest crude importer.
Foreign portfolio investors have offloaded Indian shares worth $17.71 billion since the start of the conflict, including record monthly outflows of $12.72 billion in March.
Meanwhile, data released after market hours on Monday showed India's retail inflation for March rose modestly, amid worries that a prolonged Middle East war and deficient monsoon showers could raise the cost of living over the coming months.
Markets appear to be looking past immediate risks and are instead pricing in the possibility of renewed diplomatic engagement between the U.S. and Iran, with investors positioning for stability rather than escalation, two analysts said.
STOCKS TO WATCH
* ICICI Prudential AMC reports a 10.4% year-on-year rise in March quarter profit, helped by robust domestic inflows
* Swaraj Engines posts 20% rise in net profit in the March quarter
* Hindustan Zinc emerges as the successful bidder for a potash and halite block in Rajasthan, with a total area of 1,841.2 hectares
* HG Infra Engineering secures order from Mirzapur Thermal Energy in Uttar Pradesh, worth about 5.19 billion rupees
