Sensex, Nifty Seen Tad Higher At Open

(RTTNews) - Indian shares are seen opening a tad higher on Tuesday after key Wall Street benchmarks hit record highs overnight.

That said, volatility cannot be ruled out due to prevailing tariff uncertainty.

India and the U.S. have agreed on a wide range of tariff lines, but the negotiations are stuck over sensitive sectors such as agriculture and automobiles.

A U.S. team led by U.S. Trade Representative for South and Central Asia Brendan Lynch is likely to visit India in mid-August to continue negotiations for a trade agreement, The Indian Express reported.

Benchmark indexes Sensex and Nifty rose around half a percent each on Monday to snap three days of losses following strong Q1 earnings from heavyweights HDFC Bank, ICICI Bank and Reliance Industries.

The rupee fell by 14 paise to close at 86.30 against the dollar due to trade talk uncertainty and consistent dollar demand from oil importers.

Asian markets were mixed this morning and the dollar traded in a tight range while gold prices fell slightly on profit taking after climbing to over one-month highs.

Oil prices were down around 1 percent in Asian trade, extending losses from the previous session amid signs of a brewing U.S.-EU trade conflict.

U.S. stocks ended mostly higher overnight as upbeat earnings and lower bond yields offset lingering trade tensions.

The tech-heavy Nasdaq Composite and the S&P 500 rose 0.4 percent and 0.1 percent, respectively to hit new record closing highs while the Dow finished marginally lower. European stocks ended mixed on Monday as reports suggested that EU leaders are preparing for a showdown over U.S. tariff threats.

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