Sensex, Nifty Likely To Open On Cautious Note

(RTTNews) - Indian shares look set to open on a flat note Thursday as investors await the conclusion of India-U.S. trade deal, which is reportedly at its final stage.

Defense-related stocks could be in focus following reports that the United States and India have agreed to firm up a 10-year framework for major defense partnership between the two countries.

The decision on the defense framework was mentioned in a Pentagon statement that was released a day after Rajnath Singh and U.S. Defense Secretary Hegseth held a phone conversation.

Investors will also assess the tariff implications of the U.S.-Vietnam deal announced on Wednesday.

The terms of the deal call for Vietnam to pay a 20 percent tariff on goods sent to the U.S. and a 40 percent tariff on any transshipping.

The South-Asian country will impose 0 percent tariff on U.S. goods, although details were limited. Analysts say the deal risks provoking retaliatory steps from China.

Benchmark indexes Sensex and Nifty ended down around 0.3 percent each on Wednesday. The rupee fell by 9 paise to close at 85.68 against the dollar.

Asian markets were broadly lower this morning in the leadup to U.S. jobs data due later in the day.

U.S. Treasuries inched up while the dollar held losses to hover around three-year lows. Gold dipped below $3,350 per ounce while oil prices fell about 1 percent on signs of weak U.S. demand.

U.S. stocks ended mostly higher overnight as President Donald Trump's announcement of a trade deal between the U.S. and Vietnam helped offset data that showed U.S. private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought.

The tech-heavy Nasdaq Composite and the S&P 500 gained 0.9 percent and half a percent, respectively to close at record highs while the narrower Dow finished marginally lower.

European stocks also closed broadly higher on Wednesday amid a flurry of deals. The pan European STOXX 600 gained 0.2 percent.

The German DAX rose half a percent and France's CAC 40 climbed 1 percent while the U.K.'s FTSE 100 slid 0.1 percent as bond yields rose due to political uncertainty after Chancellor Rachel Reeves failed to get support from Prime Minister Keir Starmer.