Sensex, Nifty Seen Higher At Open

(RTTNews) - Indian shares look set to open on a positive note Tuesday as signs of easing domestic inflation opened the room for more RBI rate cuts in the coming months.

India's consumer price inflation eased further in June to the lowest level in more than six years, driven by the renewed fall in food prices, official data revealed.

Consumer price inflation eased more-than-expected to 2.10 percent in June from 2.82 percent in May.

The expected rate was 2.50 percent. This was the lowest inflation rate since January 2019, when prices had fallen just below 2.0 percent.

Data released earlier on Monday showed that India's wholesale prices dropped 0.13 percent year-over-year in June, which was the first decline since November 2023.

Benchmark indexes Sensex and Nifty ended down about 0.3 percent each on Monday while the rupee fell by 22 paise to settle at 8.02 against the dollar due to foreign fund outflows and delay in any breakthrough in the India-U.S. trade talks.

Foreign portfolio investors offloaded shares worth a net Rs 1,614 crore on Monday, while domestic institutional investors (DIIs) net bought shares worth Rs 1,787 crore, according to provisional NSE data.

Asian stocks were mostly higher this morning as markets viewed Trump's tariff threats as negotiation tactics.

Chinese shares slipped into the red as data showed China's economy grew at a slower clip in the second quarter as a result of trade tensions with the U.S.

The dollar held near a three-week high before U.S. CPI data and gold was firm below $3,350 per ounce while oil prices dipped as investors assessed Trump's ultimatum to Russia regarding the Ukraine war and potential sanctions on oil buyers.

U.S. stocks eked out marginal gains overnight despite President Trump threatening new tariffs of 30 percent for the EU and Mexico, and 100 percent secondary tariffs on Russia if a deal on ending the war in Ukraine is not reached within 50 days.

The S&P 500 edged up by 0.1 percent, the Dow gained 0.2 percent and the tech-heavy Nasdaq Composite added 0.3 percent after Trump said he was open to more tariff negotiations with major economies.

European stocks ended broadly lower on Monday after seeing some recovery from intraday lows in afternoon trades as reports emerged that the EU is preparing retaliatory measures against U.S. tariffs.

The pan European STOXX 600 ended little changed with a negative bias. The German DAX fell 0.4 percent and France's CAC 40 shed 0.3 percent while the U.K.'s FTSE 100 gained 0.6 percent to reach a fresh record high.