Indian Shares Poised For Cautious Start

(RTTNews) - Indian shares look set to open a tad lower on Tuesday as investors react to weak global cues, a stronger dollar and rising bond yields ahead of the highly anticipated Federal Reserve's interest-rate decision.

Renewed FII selling, IndiGo's flight chaos and uncertainty over India-U.S. trade deal may also keep investors on edge.

Benchmark indexes Sensex and Nifty fell by 0.7 percent and 0.9 percent, respectively on Monday as investors stepped into a week packed with IPO activity and central bank decisions. The rupee depreciated 14 paise to close at 90.09 against the U.S. dollar.

Foreign portfolio investors net sold shares worth Rs 656 crore on Monday while domestic institutional investors net bought shares to the extent of Rs 2,549 crore, as per exchange provisional data.

Asian markets were broadly lower this morning, though overall losses remained limited after the U.S. allowed Nvidia to export H200 chips to China. Also, China's top leaders have pledged to expand demand with more proactive policies in 2026.

U.S. Treasury yields climbed to the highest in more than two months, supporting the dollar. Crude prices extended losses, after having tumbled around 2 percent on Monday. Gold was subdued below $4,200 per ounce on expectations of limited Fed easing.

Overnight, U.S. stocks ended lower as Treasury yields gained on inflation worries and investors waited for clues about future policy moves from an apparently divided Fed. The Dow dipped half a percent, the tech-heavy Nasdaq Composite slid 0.1 percent and the S&P 500 fell 0.4 percent.

European stocks ended subdued on Monday ahead of a busy week of central bank meetings.

The pan European 600 ended flat with a negative bias. The German DAX inched up marginally, while France's CAC 40 finished marginally lower and the U.K.'s FTSE 100 eased 0.2 percent.