Indian shares may open flat on Tuesday, influenced by mixed signals from global markets and in anticipation of the Industrial Production (IIP) and inflation data scheduled for release on Wednesday.
The potential for upward movement appears limited as international oil prices surged. This rise is driven by expectations of increased seasonal fuel demand and potential U.S. crude purchases to replenish its petroleum reserve.
Crude prices continued their upward trajectory in Asian trading, building on a nearly 3 percent surge that took them to a one-week high on Monday.
Benchmark indexes Sensex and Nifty exhibited volatility before closing modestly lower on Monday. The rupee depreciated by 10 paise, settling at 83.50 against the dollar, following an increase in U.S. bond yields.
Foreign institutional investors (FIIs) maintained their net buying stance in Indian equities for the second consecutive day on Monday, acquiring stocks worth Rs 2,572 crore. Meanwhile, domestic institutional investors (DIIs) were net buyers of shares amounting to Rs 2,764 crore, according to provisional data from stock exchanges.
Asian markets displayed a mixed performance this morning, with the dollar holding steady while gold prices edged lower as expectations for U.S. rate cuts diminished.
In the United States, stocks registered modest gains in cautious trading overnight. Traders positioned themselves ahead of upcoming inflation data and a Federal Reserve meeting.
The tech-centric Nasdaq Composite increased by 0.4 percent, and the S&P 500 rose by 0.3 percent, both reaching new record closing highs. The Dow inched up 0.2 percent.
European stocks ended lower on Monday, as victories for far-right parties in EU elections led French President Emmanuel Macron to call for a snap parliamentary poll, heightening uncertainty within the bloc.
The pan-European STOXX 600 decreased by 0.3 percent. Germany’s DAX dropped 0.3 percent, France’s CAC 40 fell 1.4 percent, and the U.K.’s FTSE 100 eased by 0.2 percent.
