Indian equity benchmarks are poised for a flat-to-weak opening on Monday, with the GIFT Nifty trading around 24,300 in early pre-market sessions.
The futures contract indicates a marginal weakness relative to Friday’s close, suggesting that investors are approaching the start of the week with caution.
This subdued outlook comes despite mixed signals from global markets, as traders weigh the immediate impact of escalating rhetoric and tension between the United States and Iran.
The geopolitical friction is acting as a headwind, offsetting potential positive flows from other international developments.
This marks a shift from the recent momentum seen in Indian equities, which had extended weekly gains in late June as crude oil prices retreated and supported an improved earnings outlook. At that time, the retreat in energy costs provided a clear tailwind for domestic stocks, particularly in sectors sensitive to input costs.
However, the current environment is more complex, with the emerging US-Iran peace deal narrative competing against immediate geopolitical risks.