India Small Caps Return to Pre-War Levels as Risk Mood Improves

Good morning...

I’m Alex Gabriel Simon in Mumbai, bringing you the key market updates before start of trade.

Indian equities look set to build on Wednesday’s rally, tracking gains in global stocks on bets of a de-escalation of the Middle East conflict. The US and Iran are considering a two-week extension of the ceasefire to allow more time to negotiate a peace deal. At home, the Nifty’s decisive move above the 24,200 mark in the last session signals bulls have taken charge in April after four straight months of declines in the benchmark. But with crude still not too far from the $100 mark and foreign flows remaining patchy, the durability of this rebound will be tested. Indian officials have said the Iran war could be as disruptive to the economy as the Covid pandemic was.