Indian Shares Seen Subdued As Trump Rules Out Iran Talks For Now
(RTTNews) – Indian shares are seen opening on a cautious note on Wednesday as investors weigh geopolitical and trade tensions against positive global cues.
Pharma stocks could be in focus after U.S. President Donald Trump announced a phased tariff plan on imported generic medicines.
Under the proposal, generic drugs imported into the U.S. will continue to face zero tariffs until August 2028, after which duties will increase to 100 percent and then 200 percent, to incentivize U.S. manufacturing.
Benchmark indexes Sensex and Nifty fell around 0.3 percent and 0.2 percent, respectively on Tuesday as oil prices remained elevated despite hopes the U.S. and Iran will resume peace negotiations.
The rupee rose by 21 paise to close at 96.24 against the dollar amid strong inflows related to the RBI’s initiatives to support foreign exchange liquidity.
According to central bank data, banks have mobilized over $20.7 billion in foreign exchange inflows under the swap facility since June, providing significant structural support to the country’s balance of payments position. Analysts said the total inflows will be around $60-70 billion by the time the window closes.
Foreign institutional investors returned as net buyers in Indian equities and net bought shares worth Rs 1,650.16 crore on Tuesday, while domestic institutional investors turned net sellers and offloaded shares worth Rs 656.88 crore, according to provisional exchange data.
Asian markets were broadly higher this morning, driven by a rebound in semiconductor shares after data showed South Korea’s semiconductor exports soared 180 percent year-on-year in the first 20 days of July, underscoring sustained AI-driven demand.
Elsewhere, orders for Taiwanese exports surged to a record high in June, Japan’s exports rose for a tenth straight month, and Xiaomi raised its full-year smartphone sales target, boosting investor confidence in tech and artificial intelligence-related stocks.
The U.S. dollar index held near a one-week high while the Japanese yen slid past 163 per dollar for the first time since 1986 as investors factored in at least one Fed rate hike by the end of the year.
Gold jumped more than 1 percent to $4,125 an ounce, extending gains for a fourth consecutive session after rebounding from last week’s drop.
Oil extended gains after settling at a five-week high on Tuesday as risks to global supply spread beyond the Middle East to the Black Sea.
Brent crude futures rose above $92 a barrel, climbing for a fourth day, as U.S. President Trump played down the prospects of near-term talks with Iran and warned that U.S. forces could strike Iran’s Pickaxe Mountain, which is located near Natanz and is believed to house an undeclared nuclear enrichment facility.
The threat came as the U.S. military completed the 11th night of strikes on Iran and Tehran retaliated across the Gulf, signaling a further escalation in hostilities.
The U.S. military said it had targeted military operations centers, maritime assets, aircraft hangars, drone storage facilities and logistic infrastructure.
Overnight, U.S. stocks gained momentum as semiconductor names took center stage ahead of a flurry of tech earnings reports due this week.
Industrial conglomerate 3M and auto giant General Motors reported better-than-expected second-quarter results, helping offset concerns over Middle East hostilities, inflation and U.S. trade policy.
The S&P 500 advanced 0.9 percent to snap a three-day losing streak, while the Dow gained 0.7 percent and the tech-heavy Nasdaq Composite rallied 1.3 percent.
European stocks closed on a firm note on Tuesday, with tech and mining stocks leading the surge amid fresh diplomatic efforts to ease Middle East tensions.
The pan-European STOXX 600 rose 0.6 percent. The German DAX surged 0.7 percent, France’s CAC 40 edged up 0.3 percent and the U.K.’s FTSE 100 added 0.6 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
