Sensex, Nifty Seen Tad Higher At Open

(RTTNews) - Indian shares may open a tad higher on Tuesday after U.S. President Joe Biden and top Republican Kevin McCarthy have called their latest talks on the debt ceiling productive but acknowledged areas of disagreement.

That said, hawkish comments from Fed officials, a firmer dollar in international markets and caution ahead of upcoming F&O expiry may induce some volatility as the session progresses.

Benchmark indexes Sensex and Nifty rose around 0.4 percent and 0.6 percent, respectively on Monday to extend gains for a second straight session, with Adani Group stocks leading the surge.

The rupee fell by 16 paise to close at 82.83 against the dollar on account of excess liquidity in the system after the RBI announced its decision to withdraw the 2,000- rupee note from circulation.

Asian stocks traded mixed this morning, the dollar hit a six-month high against the yen and gold edged lower while oil prices rose for a second consecutive session on forecasts for oil demand to rise in the second half of the year.

U.S. stocks closed mixed overnight as investors awaited new updates on debt ceiling negotiations and Treasury Secretary Yellen said that the likelihood of the Treasury paying all U.S. bills by June 15th is quite low.

Hawkish comments from Fed officials also weighed, with Federal Reserve Bank of St. Louis President James Bullard backing two more interest-rate increases in 2023 and his Minneapolis colleague Neel Kashkari cautioning against reading too much into a June pause.

The Dow shed 0.4 percent, while the S&P 500 finished marginally higher and the tech-heavy Nasdaq Composite added half a percent.

European stocks also ended mixed on Monday, with traders focusing on U.S. debt ceiling talks and the results of Greece's general elections.

The pan European STOXX 600 ended flat with a positive bias. The German DAX dropped 0.3 percent and France's CAC 40 slipped 0.2 percent while the U.K.'s FTSE 100 inched up 0.2 percent.