Sensex, Nifty Seen Higher At Open As Fed Rate-cut Hopes Revive

(RTTNews) - Indian shares look set to open higher on Tuesday after the S&P 500 and Nasdaq Composite hit record high levels overnight.

Rate cut hopes may help underpin sentiment after Federal Reserve Governor Christopher Waller said he is 'leaning toward' a December rate cut but remains concerned about stalled progress on inflation.

Closer home, the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) is scheduled to meet from December 4 to 6, with economists expecting no change in the repo rate for the 11th consecutive meeting.

Benchmark indexes Sensex and Nifty rose around 0.6 percent each on Monday to extend gains for a second straight session despite Q2 GDP data coming in below forecasts.

Analysts said there would be a rebound in the second half of the fiscal year due to higher government spending, the ongoing festival season, and robust rural consumption.

The Indian rupee lost 21 paise to end at a fresh record low of 84.70 against the U.S. dollar on Monday following U.S. President-elect Donald Trump's threat to impose 100 percent tariffs on BRICS countries moving from U.S. dollar.

Asian markets traded mixed this morning as investors braced for a barrage of U.S. economic data and remarks from Federal Reserve speakers for additional clues on the rate outlook.

The dollar gained strength as the euro and yuan tumbled amid concerns about a possible government collapse in France and worries about Trump's tariff threats.

Gold was little changed after falling nearly 1 percent on Monday. Oil edged lower ahead of an OPEC+ meeting due on Thursday.

Overnight, tech-related shares had a good session on Wall Street ahead of a slew of economic data, including private and non-farm payroll reports, JOLTs, and readings on manufacturing activity, due this week.

Data showed a measure of U.S. manufacturing activity improved in November but continued to indicate contraction.

The S&P 500 gained 0.2 percent and the tech-heavy Nasdaq Composite jumped 1 percent to hit new record closing highs, while the Dow dipped 0.3 percent.

European stocks ended higher on Monday after France's government offered a final-hour concession to Marine Le Pen on the 2025 budget, helping calm political fears.

The pan European STOXX 600 climbed 0.7 percent. The German DAX jumped 1.6 percent, France's CAC 40 finished marginally higher and the U.K.'s FTSE 100 added 0.3 percent.