(RTTNews) – Indian shares look set to open on a positive note Thursday, though volatility cannot be ruled out as investors react to renewed geopolitical tensions and a spike in crude oil prices.
The U.S. military struck Iran for the second straight day, threatening to strain an already fragile ceasefire and heightening concerns over Middle East crude supplies.
In a social media post, the U.S. Central Command said the additional strikes were launched “to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz.”
The International Monetary Fund (IMF) has cut its 2026 global growth forecast to 3.0 percent from 3.1 percent in its April forecast, reflecting the effects of the war in the Middle East.
According to the latest IMF projections, India’s estimated 6.4 percent growth for FY27 remains well ahead of most major economies.
Benchmark indexes Sensex and Nifty fell more than 2 percent each on Wednesday as renewed U.S.-Iran tensions drove up crude oil prices, threatening inflation outlook and giving rise to Fed rate hike expectations.
The rupee settled 59 paise lower at 95.56 against the dollar, hitting its weakest level in nearly a month after U.S. President Donald Trump said the interim deal to end the Iran war is over.
Foreign institutional investors remained net buyers of Indian equities and bought shares worth Rs 1,962.80 crore on Wednesday, while domestic institutional investors net bought shares to the extent of Rs 790.16 crore, according to provisional exchange data.
Asian markets traded mostly higher this morning as chipmakers rallied on optimism over AI-driven demand.
China’s consumer inflation slowed more than expected in June while the producer price index surged for a fourth straight month to its highest since July 2022, official data released earlier today showed.
Oil extended gains, with Brent crude futures surging toward $79 a barrel on fears that intensifying U.S.-Iran tensions might disrupt shipping through the Strait of Hormuz.
Treasuries were little changed after a global bond sell-off on Wednesday on Fed rate hike bets.
The dollar held firm against most major currencies while gold steadied after three days of losses to trade around $4,078 an ounce.
U.S. stocks ended mostly lower overnight as investors fretted about the economic impacts of the Iran war.
After declaring the ceasefire with Iran is done, President Trump called Iran’s leadership “sick people”, adding he was “very upset” with the country’s military alliance with Spain.
Trump later said additional strikes on Iran won’t last long, drawing a line against the possibility of a full-scale war.
Meanwhile, minutes from the Fed’s June 16-17 meeting showed that policymakers were split on the future of interest rates, offering competing cases for hikes or cuts.
The Dow dipped 1.1 percent and the S&P 500 shed 0.3 percent while the tech-heavy Nasdaq Composite finished 0.2 percent higher.
European stocks closed sharply lower on Wednesday after the United States launched airstrikes against more than 80 Iranian military targets and simultaneously revoked a crucial Treasury license allowing Tehran to sell oil.
Iran retaliated against Bahrain and Kuwait following U.S. strikes, deepening fears over Strait of Hormuz shipping.
The pan-European STOXX 600 slumped 1.6 percent. The German DAX and France’s CAC 40 both plunged by 2.2 percent while the U.K.’s FTSE 100 tumbled 1.7 percent.
