(RTTNews) - Indian shares are seen opening on a cautious note on Friday, even as underlying sentiment may remain underpinned by easing geopolitical tensions and signs of improving foreign capital inflows.
IT stocks may come under heavy selling pressure after Accenture narrowed its revenue growth guidance to 3-4 percent from 3-5 percent estimated earlier in constant currency terms.
In itsearnings call the company warned that client budgets have not been increasing, even with AI.
On the geopolitical front, the U.S.-Iran preliminary peace deal took effect and shipping started returning to the Strait of Hormuz after months of disruption as the United States declared an end to its blockade.
The U.S. Central Command announced it had lifted restrictions on traffic to and from Iranian ports and coastal waters. Iran said it has suspended transit charges for commercial vessels for 60 days.
U.S. Vice President JD Vance has downplayed concerns that Iran could eventually impose tolls on traffic through the vital energy waterway.
Iran's Supreme Leader Ayatollah Mojtaba Khamenei said he held a "different view" on the memorandum of understanding but ultimately approved it after receiving assurances from President Masoud Pezeshkian and other officials that the country's interests would be protected. Negotiators are expected to meet in Geneva later today.
Closer home, benchmark indexes Sensex and Nifty edged up around 0.3 percent each on Thursday to extend gains for a fifth consecutive session as easing geopolitical tensions offset pressure from a stronger dollar and higher U.S. Treasury yields.
The rupee settled 14 paise higher at 94.36 against the dollar, extending its winning streak to a fifth consecutive session and reaching a six-week high amid falling oil prices and the unwinding of long dollar positions.
Foreign institutional investors net sold shares worth Rs. 1,025 crore on Thursday, while domestic institutional investors net bought shares to the extent of Rs. 3,517 crore, according to provisional exchange data.
Asian markets were broadly higher this morning, with China, Hong Kong and Taiwan closed for holidays.
The dollar held near a one-year high after a hawkish tilt by the Federal Reserve. Brent crude futures fell toward $79 a barrel and were down nearly 10 percent for the week as shipping through the Strait of Hormuz began to return to normal.
Gold traded lower at $4,180 an ounce and was on track for a third consecutive weekly decline on hawkish Fed signals.
Overnight, U.S. stocks rallied to end the holiday-shortened week on an upbeat note after the U.S. and Iranian Presidents signed a preliminary agreement to end the Middle East war and the first ships started sailing through the Strait of Hormuz.
Semiconductor stocks topped the gainers list as oil prices slid to their lowest levels since early March and President Trump said that Apple was going to buy computer chips from Intel.
In economic news, weekly jobless claims dropped last week but remained at slightly higher levels. The tech-heavy Nasdaq Composite soared 1.9 percent, the S&P 500 gained 1.1 percent and the narrower Dow edged up by 0.1 percent.
European stocks pulled back from a record high to end mixed on Thursday. The pan-European STOXX 600 eased 0.3 percent.
While the German DAX and France's CAC 40 both rose by 0.4 percent, the U.K.'s FTSE 100 lost 1 percent, dragged down by energy stocks.
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