Indian shares set for muted start amid India-Pakistan tensions
India's benchmark indexes are likely to open little changed on Thursday amid escalating tensions with neighbour Pakistan and as the U.S. Federal Reserve said that risks of higher inflation and unemployment have risen due to the global trade war.
The Gift Nifty futures were trading at 24,422, as of 7:52 a.m. IST, indicating the Nifty 50 will open around Wednesday's close of 24,414.4.
Pakistan vowed to retaliate against Indian air strikes on Wednesday that came in the aftermath of an attack by Islamist militants on Hindu tourists that killed 26 people in Indian Kashmir last month.
India told more than a dozen foreign envoys in New Delhi that 'if Pakistan responds, India will respond,' fuelling fears of a larger military conflict in one of the world's most dangerous - and most populated - nuclear flashpoint regions.
Investors and analysts say the latest conflict between India and Pakistan may not severely impact New Delhi's efforts to pitch itself as a safe haven for foreign investors amid global economic turmoil.
Foreign investors bought Indian shares for a fifteenth consecutive session on Wednesday, as per provisional data, marking their longest buying streak in two years.
They have bought 450.55 billion rupees ($5.3 billion) of stocks in that period.
'While short-term fluctuations are expected, India's market resilience is evident. Investors should consider sectors aligned with government priorities, particularly defence and national security, which are likely to offer opportunities in the months ahead,' said Vikram Kasat, head - advisory at PL Capital.
India's equity benchmarks end little changed after India strikes Pakistan
Asian markets were also muted on Thursday, with the MSCI Asia ex Japan trading flat, after the Federal Reserve held interest rates steady as expected.
The U.S. central bank said the risks of higher inflation and unemployment had risen, further clouding the U.S. economic outlook as its policymakers grapple with the impact of President Donald Trump's tariffs.
Higher inflation in the U.S. may keep the Fed from cutting rates, which does not bode well for emerging markets like India.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
India's bid to isolate Pakistan at FATF fails
Listen to article India's efforts to push Pakistan back onto the Financial Action Task Force (FATF) grey list have once again failed, as the money laundering watchdog opted instead to keep the country under a "reporting" mechanism rather than downgrading its status, informed sources have revealed. Pakistan was placed on the FATF's increased monitoring list (also known as the grey list) in 2018 due to concerns about its anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks. However, in October 2022, the country was removed from the grey list following significant improvements and the completion of action items related to AML/CFT. During the latest FATF meeting, the Indian delegation actively lobbied to reinsert Pakistan into the grey list. However, China supported Pakistan, advocating for relief, while Turkey and Japan also extended their full backing. Sources said FATF opted instead to keep the country under a "reporting" mechanism rather than downgrading its status. They further indicated that India, with backing from Israel, sought to use the FATF platform to pressure Pakistan. However, member states dismissed New Delhi's attempts as negative propaganda, choosing instead to recognise Islamabad's progress. Following Operation Bunyamum Marsoos, Indian diplomatic missions had intensified campaigns against Pakistan in various countries but New Delhi's narrative failed to gain traction internationally. Meanwhile, Federal Finance Minister Muhammad Aurangzeb remarked that India has once again faced diplomatic failure on the global stage. He said the World Bank has approved a loan for the development of the Reko Diq mining project in Pakistan. The FATF is the global money laundering and terrorist financing watchdog. It sets international standards that aim to prevent these illegal activities and the harm they cause to society.
Express Tribune
5 hours ago
- Express Tribune
EPA proposes higher biofuel blending
Listen to article President Donald Trump's administration on Friday proposed to increase the amount of biofuels that oil refiners must blend into the nation's fuel mix over the next two years, driven by a surge in biomass-based diesel mandates. After months of lobbying on the issue, the biofuels industry welcomed the move, which also included measures to discourage biofuel imports. The US Environmental Protection Agency proposed total biofuel blending volumes at 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025. Under the Renewable Fuel Standard, refiners are required to blend large volumes of biofuels into the US fuel supply or purchase credits, called RINs, from those that do. Small refiners can apply for an exemption to the requirements if they can prove the obligations would cause undue harm. The proposal is driven in part by an increase in biomass-based diesel requirements. EPA set a quota of 7.12 billion biomass-based diesel RINs for 2026 — a measurement of the number of tradable credits generated by blending the fuel. It said it projected that mandate would lead to the blending of 5.61 billion gallons. The EPA expressed the biomass-based diesel requirement in billion RINs in accordance with the agency's proposal to reduce the number of RINs that could be generated from imported biofuels. After accounting for the reduction for imported biofuels, the EPA said it projected the number of RINs generated for biomass-based diesel would be 1.27 per gallon in 2026 and 1.28 RINs per gallon in 2027. Previously, the EPA projected the average gallon of biomass-based diesel generated 1.6 RINs.
Express Tribune
5 hours ago
- Express Tribune
Boeing resumes China deliveries
Listen to article Boeing delivered a new 787-9 aircraft to China's Juneyao Airlines on Saturday, Chinese media outlet Yicai reported, as trade tensions between Beijing and Washington ease. The delivery comes two days after a Boeing 787-8 Dreamliner with 242 people on board crashed in a fireball shortly after takeoff in western India. The US aerospace giant had suspended new aircraft deliveries to China in April as President Donald Trump's tariff war escalated between the world's two largest economies. Boeing said at the end of May that deliveries would resume this month after the tariffs were temporarily scaled back for 90 days. China and the US concluded two days of negotiations in London on Tuesday to resolve key trade issues in the two superpowers' bruising tariff war, where negotiators from Washington and Beijing agreed on a framework covering tariff rates.
