Sensex, Nifty Seen Higher At Open

(RTTNews) - Indian shares look set to open higher on Tuesday, even as volatility cannot be ruled out amid talk of more sanctions against Russia and ahead of key U.S. inflation readings due this week that could influence the Federal Reserve's rate trajectory.

Sustained foreign capital outflows and tariff-related uncertainties may also limit gains, if any.

CEA V Anantha Nageswaran has cautioned recent U.S. tariff hike could shave up to 0.6 percent off India's GDP this year.

Separately, in an interview with PTI, Finance Minister Nirmala Sitharaman has said the government is preparing a comprehensive package to support Indian exporters impacted by the steep 50 percent U.S. tariffs.

She noted that a multi-departmental exercise is underway to assess the effect on shipments.

Benchmark indexes Sensex and Nifty ended marginally higher on Monday as automakers surged after announcing price cuts, offsetting losses in the IT sector.

Foreign institutional investors net sold shares worth Rs. 2,170.35 crore on Monday while domestic institutional investors net bought shares to the tune of Rs. 3,014.30 crore, as per provisional data available on the exchanges.

Asian markets were mixed this morning in cautious trade. The dollar sank to an almost seven-week low and Treasuries were steady, with the two-year yield trading at its lowest since 2022.

Gold hovered near a record high near the $3,650 levels while oil prices rose for a second day despite Saudi Arabia, the world's top oil exporter, cutting the official selling price for the Arab Light crude it sells to Asia.

Overnight, U.S. stocks ended higher amid optimism around a potential Federal Reserve rate cut next week.

The tech-heavy Nasdaq Composite gained half a percent to hit a fresh record high while the Dow rose 0.3 percent and the S&P 500 inched up 0.2 percent.

European stocks rose on Monday, with Fed rate cut hopes and French politics in the spotlight.

The pan European STOXX 600 edged up by half a percent. The German DAX climbed 0.9 percent and France's CAC 40 added 0.8 percent while the U.K.'s FTSE 100 inched up by 0.1 percent.