Indian Shares Seen Tad Higher At Open

(RTTNews) - Indian shares are seen opening a tad higher on Friday amid renewed optimism about U.S.-Iran talks.

However, the U.S. and Iran are still at odds over Tehran's uranium stockpile and future control of the Strait of Hormuz.

With mediation in motion and Iranian officials reviewing Washinton's latest peace proposal, U.S. Secretary of State Macro Rubio said there were "some encouraging signs" but warned of "other options" if talks fail.

Rubio criticized Iran's efforts to regulate vessel movement through the Strait of Hormuz after reports emerged that Iran is discussing a permanent toll arrangement with Oman for ships transiting the crucial waterway.

Elsewhere, reports suggested that Egypt an Eritrea are exploring strategies to transform the Red Sea into a strategically critical waterway comparable to the Strait of Hormuz.

Benchmark indexes Sensex and Nifty gave up early gains to end slightly lower on Thursday despite firm cues from global markets.

The rupee rose by 63 paise to close at 96.20 against the dollar, marking its steepest gain in two weeks, after significant central bank intervention.

Media reports suggested that the Reserve Bank of India (RBI) is considering all of its available options to stabilize the rupee, including an interest rate hike.

"100 is just a number, the right response at this moment is to let the rupee depreciate beyond that limit," chairman of the Sixteenth Finance Commission Arvind Panagariya said on Thursday on the social media platform X.

Foreign investors net sold shares worth Rs 1,891 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs 2,492 crore, according to provisional exchange data.

Asian markets traded higher for a second consecutive session this morning despite fears that elevated oil prices will fuel inflation and force central banks to keep interest rates elevated.

The dollar held near a six-week high and Brent crude futures traded above $104 a barrel while gold was subdued at $4,524 an ounce.

U.S. stocks ended a choppy session slightly higher overnight as oil prices and bond yields retreated on hopes for a diplomatic way out of the war in Iran.

Investors reacted to reports suggesting that Iran's Supreme Leader has issued a directive that the country's near-weapons-grade uranium should not be sent abroad. Later, a senior Iranian official said no new order has been issued, calling the reports "propaganda by the enemies of the deal."

On the earnings front, chip giant Nvidia reported better than expected first quarter results, but the focus was on how long it can sustain rapid growth.

Walmart reported its slowest growth in a key sales metric in two years and issued a profit warning for the current quarter.

The Dow rose 0.6 percent to reach a new record closing high while the S&P 500 added 0.2 percent and the tech-heavy Nasdaq Composite finished marginally higher.

European stocks ended mixed on Thursday after the release of disappointing regional PMI data.

The pan-European STOXX 600 ended flat with a positive bias. The German DAX dropped half a percent and France's CAC 40 shed 0.4 percent while the U.K.'s FTSE 100 edged up by 0.1 percent.