Indian Shares Set To Extend Gains As Oil Prices Slump On US-Iran Peace Hopes

(RTTNews) - Indian shares look set to open higher on Tuesday, adding to recent gains as crude oil prices continued to ease amid hopes of a de-escalation in the Middle East conflict.

Lingering concerns over heavy investments in artificial intelligence (AI) infrastructure along with Apple's disappointing revenue and margin guidance may also shift focus back toward the Indian equity growth story.

Benchmark indexes Sensex and Nifty soared around 1.7 percent each on Monday to extend gains for a third consecutive session as heavyweight Reliance posted stronger-than-expected quarterly earnings and oil prices slumped amid diplomatic efforts to end the war in Iran.

The rupee settled 8 paise lower at 94.86 against the U.S. dollar, weighed down by a firm green back in overseas markets.

Foreign institutional investors (FIIs) net bought Indian shares worth Rs. 3,114.68 crore on Monday, while domestic institutional investors offloaded shares worth Rs 392.20 crore, according to provisional exchange data.

Responding to a question on whether Budget 2027 would offer a favorable environment for FIIs, Finance Minister Nirmala Sitharaman said on Monday that the government recognizes the need for capital.

Asian markets were broadly lower this morning, with Japanese markets closed for a national public holiday.

Chinese markets were in the spotlight after China's central bank announced it would step up the use of monetary policy tools to support its capital market, strengthen market resilience and boost investor confidence.

The U.S. dollar wobbled as the Supreme Cort rejected the Trump administration's emergency request to set aside around 20000 ballots in California in the midterm election.

Gold was little changed at $3,943 an ounce ahead of the release of key job openings, weekly jobless claims and payrolls data this week, which could influence the Federal Reserve's rate trajectory.

Brent crude futures were subdued below $104 a barrel after slumping 7.6 percent in the previous session on signs of diplomatic progress between the U.S. and Iran.

Iranian President Masoud Pezeshkian said his government has been granted more authority by the country's supreme leader Mojtaba Khamenei to pursue peace talks.

U.S. President Donald Trump signaled progress in negotiations while Iran said its offer to reopen the Strait of Hormuz can be implemented in two days if the U.S. agrees to terms.

Overnight, U.S. stocks gave up early gains to end mixed as lingering concerns about a potential artificial intelligence bust offset a sharp pullback in oil prices.

Crude oil prices fell more than 7 percent after President Trump said he's in no rush to restart the war with Iran and Tehran said it was open to peace talks.

Investors also reacted to Marvell Technology's announcement of a massive $115 billion acquisition of Lumentum as well as Oracle's plans to raise $20 billion through stock and bond offerings to finance its AI infrastructure expansion.

Anthropic released an amended S-1 filing that revealed $895 billion in AI commitments, $17 billion quarterly revenue and a $23.3 billion net loss.

In economic releases, a survey showed U.S. manufacturing activity picked up in October amid solid domestic demand, driving factory hiring to levels not seen in over five years and keeping inflation at the factory gate elevated.

The tech-heavy Nasdaq Composite fell 1.1 percent and the S&P 500 dropped half a percent, extending the sharp pullback seen over the last two sessions and hitting their lowest closing levels in three months. The narrower Dow rose 0.4 percent.

European stocks closed on a firm note on Monday, with travel and leisure shares posting their biggest daily gain since June, as a sharp drop in oil prices on optimism about a potential U.S.-Iran peace agreement eased concerns about fuel costs. The pan-European STOXX 600 gained 0.4 percent. The German DAX rose 0.6 percent, France's CAC 40 rallied 1 percent and the U.K.'s FTSE 100 added 0.3 percent.