Sensex, Nifty Seen Opening On Flat Note

(RTTNews) - Indian shares look set to open on a sluggish note on Tuesday, with rising oil prices, continued capital outflows and concerns over U.S. trade policies likely to trigger some profit taking after big gains in the previous session.

U.S. President Donald Trump has announced that his administration will impose 25 percent tariffs on all medium and heavy-duty trucks coming into the United States from other countries starting on November 1.

The tariffs will cover a wide range of larger vehicles, including delivery trucks, garbage trucks, public utility trucks, transit and shuttle buses, school buses, semi-trucks, and other heavy-duty vocational vehicles.

In another development, Trump said he was happy to work with Democrats on healthcare policy, but the government shutdown must end first.

Benchmark indexes Sensex and Nifty jumped around 0.7 percent each on Monday to extend gains for a third consecutive session, with IT stocks and financials leading the surge, ahead of a busy quarterly earnings season.

The rupee consolidated in a narrow range before settling 3 paise lower at a record low of 88.82 against the U.S. dollar.

Asian markets were mixed this morning in thin holiday trade. The Japanese yen weakened to a two-month low against the dollar amid expectations that Liberal Democratic Party candidate Sanae Takaichi will pursue a more expansionist administration.

Gold hit a new record high above $3,965 per ounce, extending gains for a third straight session against the backdrop of U.S. economic uncertainties, geopolitical tensions and expectations of further interest rate cuts by the Federal Reserve.

Oil extended gains after rising over 1 percent in the previous session following a modest OPEC+ production hike.

The tech-heavy Nasdaq Composite climbed 0.7 percent and the S&P 500 added 0.4 percent to reach new record closing highs.

The narrower Dow slipped 0.1 percent as the federal government shutdown dragged on for a sixth day, delaying the release of key economic indicators.

European stocks fell broadly on Monday as France faced a major political crisis following the resignation of newly appointed Prime Minister Sebastien Lecornu, just hours after unveiling his cabinet.

The pan-European Stoxx 600 closed flat with a negative bias. The German DAX and the U.K.'s FTSE 100 both finished marginally lower while France's CAC 40 tumbled 1.4 percent.