(RTTNews) - Indian shares look set to open on a cautious note on Wednesday amid stalled U.S.-Iran peace talks.
U.S. President Donald Trump has announced a unilateral indefinite extension to a two-week ceasefire until Tehran submitted a "unified proposal" and "discussions are concluded one way or the other."
Trump also said he would keep the naval blockade in place, which Iran's leaders have called an act of war.
There is no immediate official response by Iran on Trump's announcement. Tasnim News Agency, affiliated with Iran's Revolutionary Guards, said Iran had not asked for a ceasefire extension and repeated threats to break the U.S. Navy's blockade of Iran's ports and shore by force.
In another significant development, the U.S. has imposed sanctions on 14 individuals, entities, and aircraft linked to Iran in an attempt to disrupt supply chains supporting Iran's military capabilities.
Benchmark indexes Sensex and Nifty jumped 1 percent and 0.9 percent, respectively on Tuesday amid hopes for a resolution to the U.S.-Iran war.
The rupee fell by 28 paise to close at 93.44 against the dollar after the RBI moved to ease curbs on speculative bets in non-deliverable forward markets.
Foreign investors net sold shares worth Rs 1,919 crore on Tuesday while domestic institutional investors net bought shares to the extent of Rs 2,221 crore, according to provisional exchange data.
Asian markets were mostly lower this morning. The U.S. dollar index held steady at 98.415, the highest level since April 13 after the release of robust U.S. retail sales data and following somewhat hawkish comments from Federal Reserve nominee Kevin Warsh at a Senate confirmation hearing.
Gold rebounded to trade at $4,758 an ounce after declining more than 2 percent in the previous session.
Brent crude prices remained elevated above $98 a barrel due to lingering concerns over oil supply disruptions, with Iran threatening to end oil production in the Middle East if the Islamic Republic faced attacks launched from its Gulf neighbors' territory.
Overnight, U.S. stocks ended lower amid doubts over prospects for a breakthrough to end the U.S.-Iran war.
In an interview with CNBC, President Donald Trump said he expects to "end up with a great deal" with Tehran but indicated the military is ready to resume bombing Iran when the ceasefire expires on Wednesday.
The New York Times reported that Vice President JD Vance's trip to Pakistan has been suspended because Iran did not respond to American negotiating positions.
In economic news, retail sales increased more than expected in March and ADP's National Employment Report Pulse noted strong job creation for the fifth consecutive week, denting hopes for Federal Reserve rate cuts this year.
The Dow, the S&P 500 and the tech-heavy Nasdaq Composite all fell around 0.6 percent despite optimism over a round of solid corporate earnings.
European stocks ended lower on Tuesday, giving up early gains amid considerable uncertainty surrounding Mideast peace talks.
The pan European Stoxx 600 declined 0.9 percent. The German DAX dipped 0.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both fell by 1.1 percent.
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