Indian Shares Show Signs of Bottoming Out Even as Iran War Rages

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Good morning... I’m Savio Shetty in Mumbai, with your mid-week roundup of market news and analysis.Hopes of a de-escalation in the Middle East war have spurred early gains in Asian equities and driven oil prices lower, pointing to a positive start for Indian markets. Also, Iran said foreign ships are allowed to cross the Strait of Hormuz, as long as they aren’t supporting acts of aggression against the country and following the rules. The Nifty climbed nearly 2% on Tuesday, recouping most of the previous session’s losses. While momentum is building, follow-through buying will be crucial to signal a meaningful trend reversal. Volatility is likely to remain elevated, with derivatives expiries on Thursday adding to near-term swings. Among stocks, United Spirits will be in focus after the Indian unit of Diageo reached a deal to sell its stake in the Royal Challengers Bengaluru IPL cricket franchise. Local markets are shut on Thursday for a public holiday. See you on Friday.In today’s newsletter, we write about: