Indian Shares Likely To Open On Firm Note

(RTTNews) - Indian shares look set to open on a positive note Tuesday as investors hope for a resolution to the U.S.-Iran war, even as tensions between Washington and Tehran continue to simmer ahead of a potential ceasefire deadline.

Benchmark indexes Sensex and Nifty ended little changed on Monday after a somewhat choppy session.

The rupee fell by 19 paise to settle at 93.12 against the dollar, pushing India from fifth to sixth in global GDP rankings, according to the International Monetary Fund's latest World Economic Outlook estimates.

The RBI on Monday rolled back some restrictions on rupee derivative trades that were put in place earlier this month to arrest the currency's slide to record lows.

Foreign investors net sold shares worth Rs. 1,060 crore on Monday, while domestic institutional investors net bought shares to the extent of Rs. 2,967 crore, according to provisional exchange data.

Asian markets were mostly higher this morning, the dollar index was steady, and gold was subdued at $4,809 an ounce, while Brent crude prices slipped toward $95 a barrel on expectations of U.S.-Iran peace talks this week.

U.S. President Trump indicated that he is unlikely to extend the truce with Iran if no agreement is reached before its expiry Wednesday evening, Washington time.

Overnight, U.S. stocks ended modestly lower as oil prices jumped sharply following escalating tensions between Washington and Tehran.

After the U.S. attacked and seized an Iranian-flagged cargo ship in the Gulf of Oman, Iran reversed its decision to reopen the Strait of Hormuz and refused new face-to-face talks with the U.S.

Refusing to lift the U.S. blockade on Iranian ports, President Trump said the seized vessel was under sanctions, threatening to destroy Iran's power plants and bridges if the ceasefire lapses.

Trump also asserted that any new deal with Tehron would be "far better" than the 2015 Joint Comprehensive Plan of Action (JCPOA).

The tech-heavy Nasdaq Composite dipped 0.3 percent to snap a 13-day winning streak, while the S&P 500 eased 0.2 percent and the Dow finished marginally lower

European stocks declined on Monday as Iran rejected participation in a second round of peace talks, citing Washington's excessive demands, constant shifts in stance, contradictions and the continuing naval blockade.

The pan European Stoxx 600 fell 0.8 percent. The German DAX fell 1.2 percent, France's CAC 40 shed 1.1 percent and the U.K.'s FTSE 100 dropped 0.6 percent.