Indian Shares Likely To Open On Firm Note; Tech Stocks In Focus

(RTTNews) - Indian shares are seen opening higher on Tuesday, tracking firm cues from global markets as investors keep an eye on the latest developments in the Middle East and await the outcome of the Trump-Xi meeting in Washington on Thursday, with trade, AI and geopolitics dominating the agenda.

That said, tech stocks may come under selling pressure after an index of U.S. semiconductor stocks jumped over 4 percent on Monday amid fresh optimism around global semiconductor demand.

Meta's new AI agent app Muse rocketed to the top of the App Store in just ten days, reviving investor enthusiasm for the chip sector.

Benchmark indexes Sensex and Nifty rose 0.8 percent and 0.3 percent, respectively on Monday, supported by falling crude oil prices in international markets. The rupee gained 15 paise to close at 95.81 against the U.S. dollar on improved global risk sentiment.

Foreign institutional investors (FIIs) net sold shares worth Rs. 576.20 crore on Monday, while domestic institutional investors (DIIs) net sold shares to the extent of Rs. 2,797.27 crore, according to provisional exchange data.

Asian stocks were moving higher this morning, with Japanese markets closed for a holiday.

The U.S. dollar held firm on rate-hike bets while gold was little changed below $4,350 an ounce.

Brent crude futures traded 0.7 percent higher at $101 a barrel after closing 3.4 percent lower on Monday amid hopes for diplomatic efforts to end the U.S.-Iran war and signs of recovering Saudi oil exports.

Saudi Aramco loaded about 14 million barrels of crude oil on seven supertankers inside the Mideast Gulf on Sunday, according to data from TankerTrackers.com.

The Trump administration has proposed investing $5 billion in a new fund that would help Middle East countries rebuild energy infrastructure damaged in the Iran war, the Wall Street Journal reported.

U.S. stocks rallied overnight as oil prices slumped and the yield on 10-year bond dropped below the 5 percent mark on hopes for a potential breakthrough in Middle East talks at a UN meeting this week.

The tech-heavy Nasdaq Composite soared 2.3 percent to close at a record high, lifted by gains in AMD and other AI heavyweights.

The S&P 500 surged 1.5 percent and the Dow gained 0.7 percent despite hawkish Fed comments, with Chicago Fed President Austan Goolsbee voicing concern that inflation pressure is spreading beyond tariffs and energy, potentially requiring more aggressive and front-loaded rate hikes.

European stocks closed firmly higher on Monday amid easing inflation concerns and hopes of a resumption in U.S.-Iran negotiations.

The pan-European STOXX 600 climbed 1 percent. The German DAX surged 1.1 percent, France's CAC 40 added 0.9 percent and the U.K.'s FTSE 100 advanced 0.8 percent.