Indian shares set to pause after rally as Mideast tensions cloud ceasefire optimism

Indian shares are set to open little changed on Thursday after a sharp rally in the previous session, as renewed tensions in the Middle East tempered ​hopes that the Iran-US ceasefire would translate into lasting peace.

GIFT Nifty ‌futures were trading at 24,010 as of 8:05 a.m. IST, indicating that the benchmark Nifty 50 will open near Wednesday’s close of 23,997.35.

Both Nifty 50 and Sensex rose about 4% each ​on Wednesday as oil prices slumped after the United States and Iran ​agreed to a ceasefire, sparking a global market rally.

However, investor sentiment ⁠turned cautious on the day after Iran said it would be “unreasonable” to pursue ​talks with Washington after Israel pounded Lebanon with its heaviest strikes yet on Wednesday.

Conflicting ​signals ahead of planned U.S.-Iran talks on Saturday, including Tehran’s warning of retaliation, revived fears that the ceasefire may only be a temporary pause.

Iran’s lead negotiator, Mohammed Bager Qalibaf, said the attacks ​had undermined the truce and intensified pressure on Tehran over its nuclear programme.

The ​shift in tone weighed on broader markets, with other Asian equities opening about 0.7% lower, even ‌as ⁠crude prices hovered below $100 a barrel.

“After the sharp rally on Wednesday, markets appear to be entering a phase of consolidation and mild profit-taking, a natural response after a strong move,” said Ponmudi R, chief executive of Enrich Money, adding that geopolitical ​risks remained “fluid and unresolved.”

Back ​home, attention will ⁠now turn to the March-quarter earnings from Indian companies, beginning with IT firms later in the day, for early indications ​of how the conflict is affecting demand, costs and corporate ​guidance for ⁠fiscal 2027.