Indian Shares Seen Tad Higher At Open

(RTTNews) - Indian shares are seen opening a tad higher on Monday, tracking mostly positive cues from global markets.

That said, a cautious undertone may prevail as Middle East tensions escalated over the weekend.

Iran reportedly said it is not ready for new face-to-face talks with the U.S., citing maximalist demands. Tehran also closed the Strait of Hormuz because of the U.S.'s ongoing blockade of its ports.

Earlier, two Indian-flagged vessels came under attack from Iranian gunboats while attempting to pass through when the shipping lane had opened.

Tehran's top military command vowed to retaliate after U.S. forces have forcibly seized an Iranian-flagged cargo ship in the Gulf of Oman.

U.S. President Donald Trump has threatened to bomb Iran's power plants and bridges unless Iran accepts his terms.

On the earnings front, HDFC Bank reported stronger-than-expected Q4 earnings on improved asset quality.

ICICI Bank also reported a stronger-than-expected rise in fourth-quarter profit on the back of solid loan growth and lower provisions.

Asian markets were modestly higher in cautious trade this morning. The dollar rebounded against major peers and U.S. equity futures fell following a renewed flare-up in U.S.-Iran tensions.

Gold fell toward $4,800 an ounce while Brent crude prices surged nearly 5 percent to above $95 a barrel amid the continued standoff around the Strait of Hormuz.

U.S. stocks rose sharply on Friday, racing to another record as crude oil prices plummeted by more than 10 percent to levels seen in the early days of the Iran war amid easing geopolitical tensions.

The S&P 500 gained 1.2 percent to close above 7,100 for the first time after Iran said the Strait of Hormuz is open again for commercial traffic on the heels of the 10-day ceasefire between Israel and Lebanon.

However, President Trump said the U.S. will continue its blockade of Iranian ports until a final peace agreement is reached.

The Dow rallied 1.8 percent to reach its best closing level in almost two months and the tech-heavy Nasdaq Composite advanced 1.5 percent.

European stocks closed on a buoyant note on Friday amid easing concerns about inflation and growth.

The pan European Stoxx 600 soared 1.6 percent. The German DAX surged 2.3 percent, France's CAC 40 climbed 2 percent and the U.K.'s FTSE 100 added 0.7 percent.