Indian Stocks May Extend 4-Day Winning Run as US, Iran Agree to a Ceasefire

Good morning...

I’m Alex Gabriel Simon in Mumbai with the pre-open take on markets, which are showing signs of relief after the US and Iran agreed to a two-week ceasefire.

Asia’s stock benchmark jumped in early trading, oil plunged and the dollar weakened after the US and Iran agreed to a two-week ceasefire. That suggests Indian equities are likely to extend their four-day winning streak and the rupee is in for some respite, and, hopefully, cooking gas supplies will ease as well. The currency has emerged as a key pressure point for India’s import-heavy economy since the Middle East war began and sent oil prices surging. Traders in Mumbai will be keenly watching how this easing of geopolitical tensions features in the central bank’s policy dynamics. With the Reserve Bank of India likely to hold interest rates today, the bigger focus is on what Governor Sanjay Malhotra says about the rupee as well as the inflation outlook.

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