Indian shares to open tad higher after Trump hints at Iran deal; Adani Group in focus
Indian shares are likely to open marginally higher on Tuesday, after U.S. President Donald Trump signalled a possible nuclear deal with Iran that revived hopes of a de-escalation to the three-month-old war.
GIFT Nifty futures were at 23,688, as of 7:17 a.m. IST, pointing to a Nifty 50 open above Monday's close of 23,649.95.
Trump said he called off a planned attack on Tehran after it sent a peace proposal, and that there was now a "very good chance" of reaching a deal limiting Iran's nuclear program.
The comments have offered some hope of de-escalation, but the situation remains highly fluid, and investors remain wary about the risk of renewed escalation, said Ponmudi R, chief executive officer at Enrich Money.
India raised the prices of petrol and diesel by roughly 0.90 rupees a litre on Tuesday. It was the second hike in a week as the government sought to recoup losses caused by the crude oil surge.
The benchmark Nifty 50 and Sensex are down about 7% since the beginning of the war in late February.
Foreign investors, who have been persistent sellers of Indian equities since the war, bought shares worth 28.14 billion rupees ($292.08 million) on Monday, as per provisional data.
Also in focus will be the Adani Group. The U.S. administration moved to dismiss criminal fraud charges against the conglomerate's billionaire owner Gautam Adani, while also settling alleged Iran sanctions violations involving one of his companies.
STOCKS TO WATCH
* Royal Enfield-maker Eicher Motors gets approval from Andhra Pradesh state government for a 215.7-acre parcel for a proposed greenfield expansion with an investment of 25 billion rupees
* GQG Partners and SBI Mutual Fund buy stake in JSW Steel, while promoter JSW Energy offloads shares via open market, as per exchange data.
