Indian equity markets are likely to open on a weak note on Tuesday, with early indicators pointing to continued pressure amid elevated crude oil prices and persistent geopolitical tensions in West Asia.
The GIFT Nifty suggested a negative start for domestic equities, with futures quoted at 22,885, down 172 points or 0.75 per cent.
The decline reflects cautious sentiment as oil prices remain elevated due to tensions in West Asia.
Oil Prices Stay Elevated Amid Conflict
Crude oil prices remained near the $110 per barrel mark as concerns over escalation in the West Asia conflict kept investors on edge, reported Reuters.
Brent crude futures rose 0.4 per cent to $110.19 per barrel, while US West Texas Intermediate crude futures climbed 0.8 per cent to $113.31.
The ongoing situation, including the closure of the Strait of Hormuz, a key global oil transit route, has heightened concerns over inflation and supply disruptions.
Trump Deadline Adds To Uncertainty
Investor sentiment was further impacted after US President Donald Trump described the ceasefire proposal with Iran as “not good enough” as his deadline approached.
He warned that the US could target Iran’s power plants and civilian infrastructure if Tehran does not fully reopen the Strait of Hormuz.
Iran, however, maintained that it seeks a lasting resolution and pushed back against pressure to reopen the waterway.
Global Markets Trade With Caution
Global markets remained cautious, with investors largely staying on the sidelines amid uncertainty.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, while Japan’s Nikkei slipped 0.2 per cent after giving up early gains.
US stock futures declined 0.55 per cent, while European futures pointed to a higher opening after markets remained closed for holidays on Friday and Monday.
Market participants remain in a wait-and-watch mode as the deadline for a potential deal approaches.
Dollar Strength And Rate Outlook In Focus
The US dollar held firm near recent highs, supported by safe-haven demand amid global uncertainty.
The euro was steady at $1.1538, while the dollar index stood at 100.06.
Rising geopolitical tensions and elevated oil prices have raised concerns around inflation and growth, with traders no longer pricing in rate cuts from the US Federal Reserve this year.
Inflation Concerns Intensify
Recent data showed that US services sector growth slowed in March, while input costs rose at the fastest pace in more than 13 years.
This has added to concerns that prolonged geopolitical tensions could push inflation higher.
Investors are now awaiting US inflation data later this week for further direction.
What To Expect In Indian Markets Today
Domestic markets are expected to remain volatile, with sentiment tied to developments in West Asia, crude oil movements and global cues. Further attention will be on RBI MPC’s policy decision, to be revealed on Wednesday, to gauge an idea about growth and inflation outlook.
Analysts said markets are likely to remain cautious as investors track geopolitical developments and await clarity on the outcome of ongoing tensions.
