Indian Shares Seen Higher As Israel And Iran Pause Strikes For Now

(RTTNews) - Indian shares are seen opening a tad higher on Tuesday, with easing tensions in West Asia and a rebound in global artificial intelligence-linked stocks likely to underpin investor sentiment somewhat at open.

Investors returned to risk assets after a halt in hostilities between Israel and Iran. The two countries agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.

U.S. President Donald Trump said that he had warned Israeli Prime Minister Benjamin Netanyahu that if Israel resumed its war with Iran, it could find itself fighting alone.

Iran has warned that it would resume strikes if Israel continued operations in Lebanon. Israel categorically rejected Iran's threats and said any Iranian attempt to link Lebanon and Iran and attack Israel will be met with great force.

Benchmark indexes Sensex and Nifty fell around 1 percent each on Monday as higher risk aversion in global markets overshadowed solid GDP data for the January-March period and the announcement of capital gains tax waiver on FII investments in government bonds.

The rupee settled 56 paise lower at 95.74 against the dollar, pressured by elevated crude oil prices amid escalating geopolitical tensions in the Middle East.

Foreign investors net sold shares worth Rs 5,556 crore on Monday, while domestic institutional investors net bought shares to the extent of Rs 5,165 crore, as per provisional data on the exchange.

Asian markets were broadly higher this morning, with South Korea and Japan leading regional gains.

The dollar index eased a little bit while two-year U.S. Treasury yields stood at 4.158 percent, after having hit their highest since early 2025 at 4.201 percent in the U.S. trading session overnight.

Gold was marginally higher at $4,333 an ounce after touching a two-month trough at $4,268.39 on Monday.

Brent crude futures fell below $94 a barrel, after having hit as high as $98 a barrel overnight.

U.S. stocks closed mostly higher overnight as chipmakers and artificial intelligence-linked names attracted buying after Friday's selloff.

Sentiment was also helped by easing geopolitical tensions after President Donald Trump claimed Israel and Iran are "looking to do an immediate ceasefire" and that the final negotiations on a peace deal aimed at achieving a complete solution to the West Asia conflict are currently underway.

However, Trump cautioned that "ignorance of stupidity" could derail efforts to reach a final agreement. Iran's Tasnim agency reported that Tehran is prepared for a long-term war with Israel. Separately, Iranian Foreign Ministry spokesperson Esmail Baghaei held the U.S. responsible for recent ceasefire breaches.

The tech-heavy Nasdaq Composite gained 0.9 percent and the S&P 500 added 0.3 percent while the narrower Dow slid 0.2 percent.

European stocks closed lower on Monday as global bond yields surged on inflation concerns and rate hike expectations.

The pan-European STOXX 600 eased 0.2 percent. The German DAX dipped 0.6 percent and France's CAC 40 slipped 0.2 percent while the U.K.'s FTSE 100 finished marginally higher.