Sensex, Nifty Seen Flat To Higher At Open

Indian shares may open flat to slightly higher on Tuesday as investors react to weak global cues and earnings from the likes of Bharti Airtel and Tata Chemicals.

Benchmark indexes Sensex and Nifty ended Monday’s session modestly lower due to fag-end selling. The rupee fell by eight paise to close at 83.06 against the dollar.

Asian stocks were seeing modest losses this morning on U.S. interest rate concerns and mixed earnings reports.

The dollar held steady after hitting its strongest level since November on hawkish Fed comments.

Treasury yields remained elevated after Fed Bank of Minneapolis President Neel Kashkari said officials have time to study data before cutting rates.

His Chicago counterpart Austan Goolsbee reiterated he’d like to see more of the favorable inflation data.

Gold consolidated losses seen in the previous two sessions while oil ticked up slightly on heightened Middle East tensions.

U.S. stocks declined overnight while Treasury yields surged as Fed Chair Jerome Powell reiterated the central bank is unlikely to cut interest rates next month.
Additionally, a measure of U.S. service sector growth hit a four-month high and prices picked up, leading investors to temper rate cut expectations.

The tech-heavy Nasdaq Composite slipped 0.2 percent, the S&P 500 eased 0.3 percent and the Dow dropped 0.7 percent.

European stocks closed Monday’s lackluster session little changed. The pan-European STOXX 600 ended flat with a negative bias.

The German DAX, France’s CAC 40 and the U.K.’s FTSE 100 all finished marginally lower.

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