Indian Shares To Open On Cautious Note Amid AI Chip Selloff

(RTTNews) - Indian shares are seen opening on a cautious note on Tuesday, tracking weak cues from global markets.

That said, a continued sell-off in oil prices amid ongoing U.S.-Iran peace talks as well as mounting doubts over returns from billions of dollars of artificial-intelligence spending may help underpin investor sentiment as the session progresses.

Brent crude futures fell below $88 a barrel, marking a third consecutive session of losses after U.S. President Donald Trump told Axios that he chose to suspend strikes on Iran in order to give negotiations another chance, stressing that he could order a return to expanded military operations if diplomacy fails.

It was said that the talks are being conducted mainly between Iran and Oman, but Qatar, Pakistan, Egypt and Trump's envoys, Steve Witkoff and Jared Kushner, are also actively involved.

Tehran also ceased retaliatory strikes against U.S. bases in neighboring countries while Kazakhstan resumed crude oil exports through the Caspian Pipeline Consortium terminal that had been disrupted by Ukrainian drone attacks.

On the earnings front, Larsen and Toubro, Hindustan Unilever, Tata Capital and Ambuja Cements are among the prominent companies due to declare their Q1 earnings results today. Benchmark indexes Sensex and Nifty jumped around 1 percent each on Monday to snap a five-day losing streak after Brent crude prices plunged below $90 a barrel amid a pause in the U.S.-Iran war.

The rupee rose by 68 paise to close at 95.88 against the dollar, marking its biggest single-day gain in seven weeks due to central bank intervention.

RBI Governor Sanjay Malhotra said in an interview that banks have mobilized nearly $32 billion, largely through FCNR(B) deposits, and that the central bank remains committed to currency and financial stability.

Foreign investors net sold shares worth Rs 1,688 crore on Monday, while domestic institutional investors net bought shares to the extent of Rs 2,329 crore, as per provisional exchange data.

Asian markets were lower this morning, with tech-heavy Japan and South Korea leading losses after a series of negative developments.

The U.S. dollar hovered near a one-month high while gold dipped below $4,050 an ounce as traders await Wednesday's Federal Reserve policy decision.

Overnight, U.S. stocks fluctuated before ending narrowly mixed. Investors sold off chip stocks as concerns over China's rising semiconductor capabilities coupled with Nvidia's AI infrastructure deals worth more than $750 billion sparked fears of an AI bubble and circular financing, offsetting a broad reprieve from falling oil prices.

In economic news, June durable goods orders rose 0.3 percent in June after tumbling by a revised 4.0 percent in May, missing forecasts and signaling weaker demand.

While the tech-heavy Nasdaq Composite slid 0.2 percent to hit a nearly three-month closing low, the S&P 500 inched up marginally and the narrower Dow added half a percent.

European stocks closed mostly higher on Monday as a late sell-off in technology stocks stifled a rally fueled by plunging oil prices amid easing U.S.-Iran tensions. The pan-European STOXX 600 ended little changed, giving up early gains. The German DAX rallied 1 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose by 0.4 percent.