Sensex, Nifty Seen Opening Tad Higher On Dovish Fed Speak

(RTTNews) - Indian shares are likely to open on a positive note Tuesday as investors react to dovish Fed comments and weigh rising geopolitical risks.

The death toll in Israel has surged to more than 800 after a surprise attack by Hamas, while the death toll in the Gaza Strip rose to 687.

The leaders of numerous Western nations have condemned the attacks by Hamas, while Arab nations have urged that the fighting on both sides stop.

Benchmark indexes Sensex and Nifty fell around 0.7 percent each on Monday while the rupee ended flat at 83.26 against the dollar.

Asian markets traded mostly higher this morning. The dollar slipped while gold extended sharp overnight gains after Fed officials downplayed the possibility of another rate increase in 2023.

Oil prices fell slightly after rising more than 4 percent on Monday on concerns about potential disruptions to global oil supplies.

U.S. stocks reversed early losses to end higher overnight and Treasury yields declined as dovish Fed comments outweighed concerns around the deadly Israel-Hamas conflict.

Federal Reserve Vice Chair Philip Jefferson said in a speech that the central bank needs to "proceed carefully to balance the risk of tightening too much."

Fed officials Mary Daly and Lorie Logan also recently said that tighter financial conditions could limit future rate hikes.

The Dow and the S&P 500 both climbed around 0.6 percent, while the tech-heavy Nasdaq Composite gained 0.4 percent.

European stocks fell on Monday as rising oil prices and another batch of disappointing eurozone economic data stoked concerns about inflation and economic growth.

The pan European STOXXX 600 slid 0.3 percent. The German DAX dropped 0.7 percent, France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 finished marginally lower.