Indian shares set to open lower ahead of Trump deadline on Strait of Hormuz
Indian shares are set to open lower on Tuesday, pressured by lingering uncertainty over a potential resolution to the Middle East war ahead of a deadline set by U.S. President Donald Trump on reopening the Strait of Hormuz.
GIFT Nifty futures were trading at 22,889.5 as of 8:01 a.m. IST, indicating that the benchmark Nifty 50 will open below Monday's close of 22,968.25 points.
Both the Nifty 50 and Sensex had opened lower on Monday but reversed course to end about 1.1% higher as the U.S. and Iran weighed a framework for ending their conflict.
However, optimism faded soon, with the two countries exchanging verbal attacks.
Trump reiterated threats to strike Iran's power plants and civilian infrastructure unless Tehran reaches a deal by 8 p.m. EDT Tuesday or 5:30 a.m. IST on Wednesday to reopen the Strait of Hormuz. Iran said it wanted a permanent end to the conflict and not a temporary ceasefire.
Other Asian markets traded 0.6% higher. [MKTS/GLOB]
Oil extended gains and hovered around $111 a barrel, as Trump intensified his rhetoric against Iran. Elevated crude prices strain India's import bill and weigh on economic growth and corporate margins. [O/R]
"Markets are likely to remain highly sensitive to developments in the Iran war, movements in crude oil prices and trends in foreign flows," said Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services.
"As Trump's deadline to Iran nears end, near-term uncertainty is likely to be elevated in the session."
Back home, the Nifty and the Sensex have each fallen about 9% since the Iran war began on February 28, with foreign institutional investors offloading $15.8 billion worth of shares, including a record $12.7 billion in March.
Among individual stocks, domestic rate-sensitives such as banks, non-bank lenders, autos, consumer and real estate companies will be in focus ahead of the Reserve Bank of India's policy decision on Wednesday.
The RBI is expected to keep interest rates unchanged as policymakers assess the fallout from the Iran war.
STOCKS TO WATCH
** Hindalco and Vedanta could rise after J.P. Morgan upgrades the aluminium makers to "overweight" from "neutral" on higher Aluminium prices due to the Iran war
** Godrej Consumer Products expects a close-to-double-digit growth in revenue in the March quarter, flags a potential 6%-9% rise in costs due to higher crude, palm oil prices
** PC Jeweller says its Q4 revenue rose about 32% Y/Y and FY26 revenue grew 49%
