Indian Shares Set For Cautious Start As Oil Extends Last Week's Rally

(RTTNews) - Indian shares look set to open on a cautious note on Monday as U.S.-Iran tensions persist, oil prices remain elevated and investors await earnings from prominent companies.

Adani Enterprises, Hindustan Unilever, Maruti Suzuki India, UltraTech Cement, Vedanta and Zomato are among the prominent companies scheduled to report their quarterly earnings results this week.

India and New Zealand are set to sign their Free Trade Agreement today with a goal to increase bilateral trade to $5 billion over the next five years from just over $1 billion currently.

Brent crude futures climbed above $107 a barrel in Asian trade today, extending last week's rally amid renewed worries about the Iran war and the Strait of Hormuz, which remains effectively closed amid stalled peace talks.

U.S. President Donald Trump on Sunday scrapped the U.S. negotiating delegation's trip to Pakistan at the last minute, adding that Iran can reach out to the U.S. if it wants to negotiate an end to the conflict, which has now entered its ninth week.

Tehran rejected direct talks with the U.S. under pressure, with Iranian President Masoud Pezeshkian reiterating that the country will not engage in "imposed negotiations under threats or blockade."

Analysts say that even if the Strait reopens, it could take months for oil flows to normalize.

Asian markets were mixed this morning and the dollar index strengthened while gold was little changed above $4,700 an ounce ahead of major central bank meetings.

U.S. stocks ended mixed on Friday amid easing geopolitical tensions and Intel's blowout earnings report.

Sentiment was buoyed after Iranian Foreign Minister Abbas Araghchi said he was heading to Pakistan to focus on bilaterial matters and regional developments.

CNN reported that U.S. Special Envoy Steve Witkoff and Trump's son-in-law Jared Kushner will likely represent the U.S. and that Vice President JD Vance will step in if needed.

The tech-heavy Nasdaq Composite surged 1.6 percent and the S&P 500 added 0.8 percent to reach new record closing highs as Treasury yields eased on bets that the Federal Reserve could resume its cuts to interest rates later this year. The narrower Dow eased 0.2 percent, dragged down by Marck and Verizon.

European stocks ended lower on Friday amid concerns about elevated energy prices and their impact on regional growth.

The pan-European STOXX 600 fell 0.6 percent. The German DAX slid 0.1 percent while France's CAC 40 and the U.K.'s FTSE 100 both dipped by 0.8 percent.