Sensex, Nifty Seen Tad Higher At Open; Oil Stocks In Focus

(RTTNews) - Indian shares are seen opening higher on Tuesday, with oil & gas companies likely to be in focus after the government cut windfall tax on petroleum crude to zero from Rs 4,100 per ton with effect from May 16.

The upside, however, may remain limited after data showed India's exports fell for a third consecutive month in April, with trade deficit hitting a 20-month low.

Benchmark indexes Sensex and Nifty rose about half a percent each on Monday on the back of encouraging inflation data and upbeat earnings updates from the likes of Tata Motors and DLF. The rupee fell by 15 paise to close at 82.33 against the dollar.

Asian markets traded mixed this morning as a slew of Chinese economic data portrayed an uneven economic recovery.

The dollar fell from a five-week high ahead of key U.S. data and crucial debt ceiling talks.

Gold held steady while oil prices extended overnight gains as wildfires in Canada fueled supply worries and the U.S. started soliciting bids for crude to fill its depleted strategic reserves.

U.S. stocks ended mostly higher overnight as reports of progress on debt ceiling talks outweighed data showing a substantial downturn in regional manufacturing activity in May.

Both President Joe Biden and Treasury Secretary Janet Yellen expressed optimism about an eventual agreement on raising the U.S. debt.

The Dow inched up 0.1 percent to snap a five-session losing streak and the tech-heavy Nasdaq Composite climbed 0.7 percent to reach its best closing level in well over eight months while the S&P 500 added 0.3 percent.

European stocks eked our marginal gains on Monday after the European Commission upgraded the continent's 2023-24 growth outlook.

The pan European STOXX 600 gained 0.3 percent. The German DAX and France's CAC 40 edged up marginally while the U.K.'s FTSE 100 rose 0.3 percent.