Indian benchmark indices are set for a subdued opening on Monday, tracking weakness in Asian markets and US stock futures as investor caution returns amid renewed escalation in US-Iran relations.
The Gift Nifty, a key pre-market indicator, hovered around the 24,000 level, trading at a discount of nearly 28 points from the previous close of Nifty futures, signaling cautious sentiment among traders.
Elevated crude oil prices remain a key risk to domestic markets, with geopolitical tensions in the Middle East continuing to weigh on investor sentiment.
However, analysts note that a stable rupee, sustained foreign portfolio investor (FPI) inflows, and easing volatility could help domestic markets remain resilient.
Strong corporate earnings from the first quarter are also expected to provide underlying support, offsetting some of the external headwinds.
The market's cautious stance reflects broader global uncertainty, with investors closely tracking Federal Reserve policy signals and the evolving geopolitical landscape.