Indian shares set to pause after rally as Mideast tensions cloud ceasefire optimism
Indian shares are set to open little changed on Thursday after a sharp rally in the previous session, as renewed tensions in the Middle East tempered hopes that the Iran-U.S. ceasefire would translate into lasting peace.
GIFT Nifty futures were trading at 24,010 as of 8:05 a.m. IST, indicating that the benchmark Nifty 50 will open near Wednesday's close of 23,997.35.
Both Nifty 50 and Sensex rose about 4% each on Wednesday as oil prices slumped after the United States and Iran agreed to a ceasefire, sparking a global market rally.[.BO]
However, investor sentiment turned cautious on the day after Iran said it would be "unreasonable" to pursue talks with Washington after Israel pounded Lebanon with its heaviest strikes yet on Wednesday.
Conflicting signals ahead of planned U.S.-Iran talks on Saturday, including Tehran's warning of retaliation, revived fears that the ceasefire may only be a temporary pause.
Iran's lead negotiator, Mohammed Bager Qalibaf, said the attacks had undermined the truce and intensified pressure on Tehran over its nuclear programme.
The shift in tone weighed on broader markets, with other Asian equities opening about 0.7% lower, even as crude prices hovered below $100 a barrel. [MKTS/GLOB] [O/R]
"After the sharp rally on Wednesday, markets appear to be entering a phase of consolidation and mild profit-taking, a natural response after a strong move," said Ponmudi R, chief executive of Enrich Money, adding that geopolitical risks remained "fluid and unresolved."
Back home, attention will now turn to the March-quarter earnings from Indian companies, beginning with IT firms later in the day, for early indications of how the conflict is affecting demand, costs and corporate guidance for fiscal 2027.
STOCKS TO WATCH
** Info Edge (India) says standalone billings in March quarter rose 7.4% to 10.57 billion rupees ($114.3 million)
** NTPC signs a non-binding deal with France's EDF to jointly development nuclear power projects in India
** KEC International secures new orders worth 25.18 billion rupees
** Government approves 260.70 billion-rupee Kamala Hydroelectric project, a joint venture between NHPC and the Arunachal Pradesh government
($1 = 92.4790 Indian rupees)
