Indian Markets Closed For Mahavir Jayanti

(RTTNews) - Indian stock markets remain closed today for Mahavir Jayanti. On Monday, benchmark indexes Sensex and Nifty both fell over 2 percent as Brent crude prices topped $115 a barrel on fears of more disruptions to shipping lanes, posing a significant risk to inflation, the current account and fiscal deficits.

Both the indexes plummeted around 11 percent in March, marking their worst monthly loss since the COVID-19-led rout in March 2020.

The Indian rupee hit a record low past 95 to the dollar despite the RBI's decision to tighten limits on banks' FX positions.

The rupee fell 11 percent over the fiscal year ending March, marking its steepest fall since 2011-12 as tariff worries and rising energy risks amid escalating U.S.-Iran tensions rattled foreign investors.

Domestic institutional investors net bought shares worth Rs 14,895 crore on Monday, while foreign investors net sold shares to the extent of Rs 11,163 crore, as per provisional data on the exchanges.

According to official data released after market hours, India's industrial output growth improved somewhat in February on the back of manufacturing.

Industrial production advanced 5.2 percent year-over-year in February, following an upwardly revised 5.1 percent expansion in January. Economists had expected the growth to ease to 4.2 percent.

Asian markets were mixed this morning as investors weigh the latest developments in the Middle East.

The status of peace talks remains unclear, with Iran's ministry of foreign affairs denying having talks in the last thirty-one days and clarifying the U.S. has submitted a "negotiation request."

The dollar is on track for its best month since September 2022 after U.S. forces targeted a major ammunition depot in Isfahan, Iran, intensifying regional tensions and fears of impending retaliation.

Gold jumped 1.5 percent toward $4,600 an ounce but was poised for a monthly loss of about 13 percent, marking its worst monthly performance since October 2008.

Brent crude prices fell over 1 percent to $106 a barrel but were on track for a record monthly surge of 60 percent.

Iran struck a Kuwaiti oil tanker near a Dubai port, highlighting heightened risks for shipping in the Persian Gulf.

According to the Wall Street Journal, Trump told aides he is willing to end the U.S. military campaign against Iran even if the strategically vital Strait of Hormuz remains largely closed.

Instead, the administration plans to achieve core objectives - crippling Iran's navy and missile capabilities and resuming normal operations in the strait.

Overnight, U.S. stocks ended mixed as the Middle East conflict escalated with the entry of Houthi rebels into the war and the expanding U.S. military footprint in the region, causing oil prices to spike and fanning inflation fears.

President Donald Trump claimed great progress in peace talks with Iran but renewed his threat to "blow up" Iran's power plants, oil wells, Kharg Island and "possibly all desalinization plants" if a peace agreement is not reached "shortly" and the Strait of Hormuz is not "immediately" reopened.

Treasury Secretary Scott Bessent said in an interview with Fox News that the U.S. would eventually regain control of the Strait of Hormuz and ensure freedom of navigation either through U.S. escorts or a multinational escort force.

Meanwhile, bond yields fell after Federal Reserve Chair Jerome Powell said that longer-term inflation expectations remain "well anchored" and there is no need to hike rates in the near term because of the oil shock.

Powell also said that the current shake-up in the private credit space doesn't seem to have the makings of a broader systemic event.

The Dow Jones edged up by 0.1 percent while the tech-heavy Nasdaq Composite shed 0.7 percent and the S&P 500 dipped 0.4 percent.

European stocks closed firmly higher on Monday despite weak Eurozone economic sentiment data and mixed signs of de-escalation in the U.S.-Israeli war in Iran, which stretched into its second month.

The pan European Stoxx 600 climbed 0.9 percent. The German DAX rallied 1.2 percent, France's CAC 40 added 0.9 percent and the U.K.'s FTSE 100 surged 1.6 percent.