Indian shares are poised for a significant decline at Thursday’s open, following U.S. President Donald Trump’s address regarding the ongoing Middle East conflict, which has cast doubt on a swift resolution. After a robust recovery on Wednesday, where the Sensex and Nifty rose 1.7% and 1.6% respectively, investor sentiment has soured as Trump’s comments suggested a prolonged military engagement, impacting global markets.
The RBI’s recent measures to curb speculative activity in the rupee add another layer of complexity. By limiting banks’ net open positions and restricting non-deliverable forwards, the central bank aims to stabilize the currency amid heightened volatility. Additionally, foreign investors offloaded shares worth Rs 8,331 crore, while domestic institutional investors provided some support with net purchases of Rs 7,172 crore.
Market professionals should brace for potential volatility in Indian equities as geopolitical tensions escalate and central bank interventions reshape currency dynamics. The interplay between local and global factors will be critical in the coming sessions.
Source: nasdaq.com