Crude oil prices retreated on Thursday as renewed diplomatic engagement between the United States and Iran helped alleviate concerns over potential supply disruptions in the Persian Gulf.
The easing of geopolitical tensions provided a tailwind for risk assets, with Asian equity markets trading higher in early sessions.
The decline in energy costs is particularly significant for India, the world’s largest crude importer.
Lower input costs for fuel and petrochemicals support domestic inflation dynamics and corporate margins, providing a supportive backdrop for local equities.
The Gift Nifty, a key forward indicator for Indian markets, pointed to a positive opening for the BSE Sensex and NSE Nifty 50, tracking the improved global sentiment.
Investors are closely monitoring the trajectory of the US-Iran negotiations.