Analysts said the collapse of talks between Iran and the United States is likely to impact investor sentiment when markets open on Monday, with crude oil prices and key macroeconomic data also set to lead trends in a holiday-shortened week, news agency PTI reported.Stock markets will remain closed on Tuesday due to Babasaheb Ambedkar Jayanti.A senior Iranian official said on Sunday that talks between Iran and the United States in Pakistan ended without reaching an agreement due to “excessive demands” made by the American side.But Iranian Foreign Ministry spokesman Ismail Baghaei stressed that “diplomacy never ends.”US Vice President J.D. Vance, who headed the US delegation, said that the talks failed to reach a peace agreement, pointing to Tehran’s failure to give up its nuclear program as one of the main sticking points.He said that the American side made its “last and best offer” to the Iranian side, but it did not accept it.However, Al-Bikai said that the two sides had reached consensus on some issues, but had different views on “2-3 important issues.”“Finally, the talks did not reach an agreement,” the official Press TV channel quoted him as saying.Markets rose last week following the ceasefire between the US and Iran and a sharp decline in crude oil prices, which fell below the $100 level.
Last week, the stock market index Sensex jumped by 4,230.7 points, or 5.77 per cent, and the NSE Nifty rose by 1,337.5 points, or 5.88 per cent.“The Nifty-50 index enters a critical inflection point next week. After making a sharp recovery and reclaiming the 24,000 mark, the market has started reflecting cautious optimism,” said Hariprasad K, Research Analyst and Founder, Livelong Wealth.But he added that the collapse of peace talks between the United States and Iran had fundamentally changed the near-term outlook.He added: “With the negotiations ending without reaching a solution, the markets are now preparing for the return of the volatility that characterized the previous stages of the conflict.”Hariprasad added that benchmark indices are expected to open with a significant gap down, which could erase part of the recent ceasefire rally.Stock markets will also track inflation data announcements, fourth-quarter earnings and trading activity for foreign investors this week.“With the Q4FY26 earnings season underway, key results from heavyweights, such as Wipro, HDFC Bank and ICICI Bank, will be closely watched, along with several others. On the macro front, important data releases include CPI inflation (April 13) and wholesale price inflation (April 14), which will provide an insight into inflation trends,” said Ajit Mishra – Senior Vice President, Research, Religare Broking Ltd.Foreign investors continued their sell-off in Indian stocks, withdrawing Rs 48,213 crore ($5.14 billion) this month.
