Sensex, Nifty Set For Lower Open

(RTTNews) - Indian shares are seen opening on a cautious note Thursday after the U.S. Federal Reserve flagged stagflation concerns and Iran flatly denied U.S. President Donald Trump's claim that it offered to send a delegation to the White House for nuclear talks.

In a scathing statement, Tehran's UN mission said it would never "grovel at the gates" or negotiate "under duress."

"No Iranian official has ever asked to grovel at the gates of the White House," the mission posted on X (formerly Twitter).

"Iran does NOT negotiate under duress, shall NOT accept peace under duress, and certainly NOT with a has-been warmonger clinging to relevance," the statement read.

Benchmark indexes Sensex and Nifty ended down around 0.2 percent each on Wednesday as oil prices remained elevated due to heightened geopolitical tensions.

The rupee fell for a second consecutive session, closing down 23 paise at 86.47 against the dollar.

Asian markets were broadly lower this morning as Israel and Iran continued to attack each other, for the seventh consecutive day, with little clarity on whether the U.S. will join Israel's bombardment of Iranian nuclear sites.

Asked about the U.S.'s plans, Trump told reporters on Wednesday: "I may do it, I may not do it."

The dollar held steady against major peers and gold edged up slightly to hover near $3,380 per ounce while oil prices were mixed after a volatile trading week.

U.S. stocks ended narrowly mixed overnight as the Federal Reserve left interest rates unchanged, forecast two more quarter-point cuts for the year, lowered the 2025 GDP growth forecast and raised the core inflation outlook to 3.1 percent.

Chair Jerome Powell signaled that officials would wait to see the impact of President Trump's tariffs on inflation before proceeding on rates.

"Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer. We know that because that's what businesses say. That's what the data say from the past," Powell told a news conference.

In economic releases, the latest weekly jobless claims and housing data point to softening economic activity.

The tech-heavy Nasdaq Composite inched up 0.1 percent while both the Dow and S&P 500 finished marginally lower.

European stocks ended mostly lower on Wednesday as Iran's Supreme Leader rejected Trump's demand for unconditional surrender, warning of severe consequences for U.S. military action.

The pan-European STOXX 600 dipped 0.4 percent to reach a near one-month low. The U.K.'s FTSE 100 edged up 0.1 percent, while the German DAX dropped half a percent and France's CAC 40 shed 0.4 percent.