Indian Shares Seeking Rebound As Oil Prices Retreat From Highs

(RTTNews) - Indian shares look set to rebound on Tuesday as oil prices plunged nearly 10 percent on comments by U.S. President Donald Trump that the war in the West Asia could end soon and that he plans to waive oil-related sanctions and have the U.S. Navy escort tankers through the Strait of Hormuz.

Also, media reports suggest that the U.S. is considering coordinating sales of oil from the U.S. Strategic Petroleum Reserve with ?releases from other countries.

Benchmark indexes Sensex and Nifty slumped around 1.7 percent each on Monday as investors braced for a potentially prolonged standoff in the Middle East and a global energy crisis.

In the forex market, the rupee depreciated by 58 paise to close at a record low of 92.33 against the greenback on continued foreign fund outflows.

Foreign investors net sold shares worth Rs 6,346 crore on Monday while domestic institutional investors net bought shares to the extent of Rs. 9,014 crore, according to provisional exchange data.

Asian markets were broadly higher this morning, with Japan's Nikkei surging nearly 4 percent and South Korea's Kospi climbing more than 6 percent.

The dollar held an overnight decline and bond yields declined while gold traded almost 1 percent higher at $5,180 an ounce.

Overnight, U.S. stocks recovered from a sharp early sell-off to end notably higher as oil prices whipsawed and President Trump said the war with Iran may not last that long.

Trump told CBS News that he thinks "the war is very complete, pretty much and they have nothing left in a military sense." Trump also added that he's thinking about taking over the Strait of Hormuz.

The tech-heavy Nasdaq Composite and the S&P 500 both slumped by as much as 1.5 percent to reach their worst intraday levels in over three months before reversing course to end higher by 1.4 percent and 0.8 percent, respectively.

The Dow tumbled by as much as 1.9 percent before finishing half a percent higher. European stocks fell for a third day running on Monday as surging oil prices amid a deepening conflict in the Middle East threatened to stoke inflation and hobble economic growth.

The pan European Stoxx 600 dropped 0.6 percent. The German DAX shed 0.8 percent, France's CAC 40 gave up 1 percent and the U.K.'s FTSE 100 slipped 0.3 percent.