Indian Shares Set To Follow Global Peers Lower

(RTTNews) - Indian shares may follow global peers lower on Tuesday, though the downside may remain capped somewhat after the release of the latest gross domestic product figures.

Official data showed the Indian economy expanded more than expected in the June quarter, fueled by investment and spending.

GDP logged an annual growth of 7.8 percent in the April to June period, stronger than economists' forecast of 7.1 percent.

However, the pace of growth softened from the 8.6 percent expansion seen in the quarter ended March. In the same period last year, GDP growth was 6.9 percent.

Benchmark indexes Sensex and Nifty dropped around 0.4 percent each on Monday and logged monthly declines in the wake of renewed Middle East tensions and Fed Chair Kevin Warsh's hawkish Jackson Hole remarks.

The rupee erased early losses to settle 26 paise higher at 95.17 against the dollar on possible RBI intervention at lower levels.

Foreign institutional investors net sold shares worth Rs. 7,985.88 crore on Monday while domestic financial institutions net bought shares to the extent of Rs. 4,588.88 crore, according to provisional exchange data.

Asian markets traded lower this morning as surging oil prices fueled worries over inflation and raised the likelihood of tighter monetary policy, with traders now pricing a 57 percent chance of a September rate hike by the Federal Reserve.

Brent crude futures held firm near $91 a barrel on concerns about further disruptions to energy supplies through the Strait of Hormuz.

An Iranian official dismissed as "laughable" AI-gen videos shared by U.S. President Donald Trump showing Iran's oil hub Kharg Island being "blown to smithereens", with no further details.

Iranian President Masoud Pezeshkian said his country was not seeking war but will never remain silent in the face of aggression.

The U.S. dollar was steady after declining in the previous session. Gold was little changed at $4,445 an ounce.

U.S. stocks ended lower overnight as surging oil prices and Treasury yields amid renewed hostilities between Washington and Tehran added to worries about inflation and interest rates.

President Trump threatened to hit Iran "hard" after the two foes traded fire for the first time in over a month.

The Dow dropped 0.7 percent, the S&P 500 gave up 0.3 percent and the tech-heavy Nasdaq Composite slipped 0.1 percent.

European stocks ended firmly in the red on Monday after the U.S. attacked two Iranian rocket launchers on Larak Island and Iran retaliated with attacks on the United Arab Emirates and Jordan.

The pan-European STOXX 600 fell 0.6 percent. The German DAX tumbled 1.2 percent and France's CAC 40 shed 0.8 percent while the U.K. markets were closed for a bank holiday.