On Tuesday, Indian stocks are likely to start positively despite the mixed international signals. This is as investors eagerly await this week's critical consumer price inflation and producer price data from the U.S, which could indicate the Federal Reserve's potential interest rate changes.
India's key indicators, Sensex and Nifty, reduced by nearly 0.8 percent and 0.7 percent, respectively on Monday. This fall followed a cautionary statement by the Securities and Exchange Board of India (SEBI) over a midcap-small-cap rally.
The rupee experienced a rise for the third consecutive session, closing at Rs 82.76 per dollar. This is the highest value recorded since September 4, 2023.
Data confirmed that foreign portfolio investors purchased shares worth a net of Rs. 4,212 crores on Monday, while domestic financial institutions acquired shares amounting to Rs 3,238 crore.
Predictions for the retail inflation data for February and industrial output data for January are set to be announced by the statistics ministry later in the day.
Asian markets experienced moderate profits in the morning. However, Japan's Nikkei continued to face losses as the market anticipates a potential interest rate increase by the Bank of Japan next week.
The dollar and gold prices remained stable, while oil prices rose slightly in anticipation of the upcoming monthly reports from OPEC and the IEA this week.
U.S stocks closed lower for a second consecutive session as Treasury yields increased ahead of the crucial inflation data release. The Dow Jones rose by 0.1 percent, while the S&P 500 decreased by 0.1 percent, and the tech-focused Nasdaq Composite dropped by 0.4 percent.
On Monday, European stocks declined for the first time in three days due to uncertainty about interest rates' future. The pan-European STOXX 600 fell by 0.4 percent. Simultaneously, France's CAC 40 dropped by 0.1 percent, and the German DAX dipped by 0.4 percent, while the U.K.'s FTSE 100 experienced a slight increase of 0.1 percent.
