Sensex, Nifty Seen Flat To Slightly Lower At Open

(RTTNews) - Indian shares look set to open flat to slightly lower on Tuesday after U.S. stocks ended sharply lower overnight.

Benchmark indexes Sensex and Nifty recovered from an early slide to finish up around 0.3 percent each on Monday, while the rupee rose by 5 paise to close at 81.66 against the dollar despite a downward revision in India's growth forecast by S&P Global Ratings.

Asian markets traded mostly higher this morning, with Chinese and Hong Kong stocks leading regional gains after China's securities regulator lifted a ban on equity refinancing for listed property firms.

The dollar rebounded while Treasuries were little changed after St. Louis Fed President James Bullard said the U.S. central bank needs to keep its benchmark policy rate north of 5 percent for most of 2023 and into 2024 to succeed in taming inflation.

He also said that financial markets are still underestimating the degree to which the Fed will need to keep policy tight.

Oil traded flat while gold struggled for momentum as investors looked ahead to Fed chief Jerome Powell's speech Wednesday.

U.S. stocks fell sharply overnight on concerns that widespread protests in Beijing against severe pandemic restrictions could exacerbate global supply chain interruptions.

The Dow and the S&P 500 both tumbled around 1.5 percent while the tech-heavy Nasdaq Composite gave up 1.6 percent.

European stocks fell from three-month highs on Monday, as China logged record-high COVID-19 infections and ECB President Christine Lagarde said that Euro zone inflation has not peaked and it risks turning out even higher than currently expected.

The pan European STOXX 600 slipped 0.7 percent. The German DAX lost 1.1 percent, France's CAC 40 index shed 0.7 percent and the U.K.'s FTSE 100 eased 0.2 percent.