Mumbai, April 2 -- Investor sentiment could continue to remain cautious as macro uncertainty stemming from the ongoing US-Iran war continues to keep oil prices on a boil. Surging oil prices have the potential to disrupt the fiscal maths of a number of emerging market economies, including India.

Given this backdrop, India's fiscal deficit for FY26 was reported at nearly 95% of the revised annual target by February, reflecting controlled government spending and providing comfort on macro stability.

In the US, softer-than-expected data reinforced expectations of policy easing, with core PCE inflation easing to 2.6% year-on-year in February, supporting risk appetite across global equities.

In China, official data showed manufacturing activ...