Indian Markets Soar as Middle East Tensions Ease and Oil Prices Plummet
Indian equity markets are expected to open on a positive note on Monday, driven by easing tensions in the Middle East and a sharp decline in crude oil prices. The Brent crude futures price plummeted over 6% to USD 82.41 after US President Donald Trump announced that talks with Iran would take place on Monday.
This news comes as a relief for India, which has been grappling with inflationary pressures and a weakening rupee. Rajesh Palviya, Head of Research at Axis Direct, noted that the decline in oil prices is a constructive development for India, as it eases inflationary pressures, supports the rupee, and improves the macro outlook.
The Nifty 50 index is expected to open around the 24,565 level, with technical analysts predicting that the market will maintain a positive bias as long as it sustains above the 24,250 support zone. However, some experts caution that subdued Asian cues may limit near-term gains.