Sensex, Nifty Likely To See Cautious Start

(RTTNews) - Indian shares are seen opening little changed on Tuesday despite positive cues from the U.S. and Europe.

Asian stocks traded mostly lower this morning and U.S. stock futures were moving lower after data showed Chinese manufacturing activity unexpectedly shrank in October and non-manufacturing activity grew at a slower pace.

Ahead of Fed and BOE meetings this week, investors also waited to see whether the Bank of Japan will tweak its yield-curve control at a policy meeting later today.

Middle East tensions persisted, with Israeli Prime Minister Benjamin Netanyahu rejecting calls for a ceasefire in the war against Hamas.

"Calls for a ceasefire are calls for Israel to surrender to Hamas, to surrender to terrorism... this will not happen," he said, vowing Israel would "fight until this battle is won".

The World Bank warned in its latest Commodity Markets Outlook that the ongoing conflict in Middle East could push global commodity markets into unchartered waters. Gold was little changed below $2,000 per ounce while oil prices rose after falling nearly 3 percent in the previous session on demand concerns and amid signs that the Israel-Hamas war will remain contained.

U.S. stocks rallied overnight following last week's sell-off, as investors looked ahead to the Fed's rate decision and Apple's earnings.

The S&P 500 rebounded 1.2 percent after officially slipping into coercion territory. The Dow climbed 1.6 percent as McDonald's beat estimates for quarterly results.

The tech-heavy Nasdaq Composite gained 1.2 percent as Treasury yields dropped and oil prices tumbled, easing concerns around inflation and interest rates.

European stocks closed higher on Monday as Middle East worries eased and data showed cooling inflation and economic growth in Germany, the bloc's biggest economy.

The pan-European STOXX 600 inched up 0.4 percent. The German DAX edged up 0.2 percent, France's CAC 40 rose 0.4 percent and the U.K.'s FTSE 100 added half a percent.

Closer home, benchmark indexes Sensex and Nifty ended Monday's session modestly higher while the rupee ended flat at 83.25 against the dollar.