Indian equity benchmarks are trading cautiously at the open, with the Gift Nifty indicating a flat start for the Nifty 50 index.
The pre-market indicator reflects a market caught between two competing forces: an improving geopolitical backdrop that has reduced risk premiums, and renewed volatility in global technology stocks that is tempering investor enthusiasm.
Recent diplomatic developments, including progress in US-Iran talks, have helped ease supply fears and supported a drop in Brent crude prices below $90.
The cautious tone follows a period of heightened uncertainty driven by tensions in the Strait of Hormuz.
Recent diplomatic developments, including progress in US-Iran talks, have helped ease supply fears and supported a drop in Brent crude prices below $90.
This de-escalation has provided a tailwind for Indian markets, which are sensitive to energy import costs and global risk sentiment.
However, the positive impact has been partially offset by weakness in the technology sector, where global peers have faced selling pressure.