Indian Shares Muted Amid US-Iran Tensions
Indian equity benchmarks were largely flat on Thursday after recovering from early losses, as investors remained cautious over renewed US-Iran tensions, higher crude oil prices and the upcoming Reserve Bank of India policy decision.
Indian Stock Market Recovers From Early Losses
The Nifty 50 edged up 0.1 percent to 23,425.6, while the BSE Sensex gained 0.06 percent to 74,383.15 after both indices had fallen around 0.6 percent earlier in the session.
The recovery came despite weak global cues, with most Asian markets trading lower as geopolitical tensions in West Asia kept investors risk-averse.
US-Iran Tensions Keep Investors Cautious
Market sentiment remained under pressure after renewed US-Iran tensions affected global risk appetite and pushed crude oil prices higher. Brent crude traded near $97 per barrel, raising concerns for India because the country depends heavily on imported oil.
Higher oil prices can increase inflation pressure, widen the trade deficit and weigh on the rupee, making energy prices a key concern for equity investors.
RBI Policy Meeting In Focus
Investors are now watching the Reserve Bank of India’s policy meeting for signals on inflation, liquidity and currency stability. A Reuters poll showed most economists expect the central bank to keep the repo rate unchanged at 5.25 percent.
Broader markets performed better than the headline indices, with small-cap and mid-cap stocks rising. Among individual stocks, Rajesh Exports fell after a SEBI action, while Agarwal Industrial gained sharply after receiving a major order.
