Sensex, Nifty Set For Weak Start After Iran's Attack

Indian shares are likely to open lower on Monday as investors weigh TCS' robust Q4 earnings against escalating geopolitical tensions, following Iran's unprecedented attack on Israel at the weekend.

Unequivocally condemning in the strongest terms Iran's direct and unprecedented attack against Israel, the G-7 leaders on Sunday said the development risks provoking an uncontrollable regional escalation.

Hamas has presented the Israeli government with a new ceasefire deal amid the ongoing conflict in Gaza.

The United Stated it would not participate in any retaliation attacks carried out by Israel against Iran.

Investors are now waiting to see if the conflict spirals into a widespread regional war. It is feared that any further escalation could lift oil prices above $100 a barrel.

Trading in the truncated week due to a holiday on Wednesday for Ram Navami may be impacted by reaction to earnings reports from Bajaj Auto, Infosys and Wipro later in the week.

Asian markets traded sharply lower this morning amid a flight to slightly while U.S. stock futures edged up slightly after the S&P 500 suffered its worst session since January on Friday.

The dollar held its biggest weekly gain since 2022 and gold held below a record high hit in the previous session, while oil prices traded mixed after Israel said Iran's attack on the country caused limited damage.

U.S. stocks tumbled on Friday as inflation concerns continued to weigh, geopolitical tensions escalated and earnings and guidance from big banks disappointed.

U.S. consumer sentiment ebbed in April while inflation expectations for the next 12 months and beyond increased, a survey showed.

The Dow dropped 1.2 percent, the S&P 500 lost 1.5 percent and the tech-heavy Nasdaq Composite shed 1.6 percent.

European stocks ended mixed on Friday, giving up some early gains after the European Central Bank signaled a likely June interest rate cut.

The pan European STOXX 600 edged up 0.1 percent. The U.K.'s FTSE 100 rose 0.9 percent while the German DAX and France's CAC 40 slipped 0.1 percent and 0.2 percent, respectively.

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