Indian Shares Seen Up On Firm Global Cues

Indian shares look set to open on a steady note on Tuesday as investors react to firm cues from global markets and Q3 business updates from private sector banks like Axis Bank and IndusInd Bank.

Volatility cannot be ruled out amid heightened geopolitical tensions, trade deal uncertainty and caution ahead of the start of the crucial Q3 earnings season.

Benchmark indexes Sensex and Nifty ended down around 0.4 percent and 0.3 percent, respectively on Monday as caution over the implications of U.S. military action in Venezuela along with U.S. President Trump’s latest tariff threat overshadowed investor optimism over the upcoming earnings season.

The rupee ended marginally lower at 90.2775 per dollar, marking its fourth straight session drop.

Foreign investors net sold shares worth Rs 36 crore on Monday, while domestic institutional investors bought shares to the extent of Rs 1,764 crore, as per provisional data on the exchanges.

Asian markets extended a global record run, with China, Hong Kong and Japan leading regional gains.

The dollar steadied near a two-week high while gold was little changed at a one-week high above $4,450 per ounce. Oil edged lower after settling up $1 a barrel on Monday.

U.S. stocks rose overnight after the U.S. captured Venezuelan leader Maduro over the weekend and President Trump called for American energy giants to rebuild the country’s energy sector.

Investors shrugged off data that showed economic activity in the U.S. manufacturing sector contracted in December for the 10th consecutive month.

The Dow surged 1.2 percent to reach a new record closing high, while the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite advanced 0.7 percent.

European stocks closed on a firm note on Monday, with defense, technology and mining stocks leading the surge.

The pan European Stoxx 600 advanced 0.9 percent. The German DAX rallied 1.3 percent, France’s CAC 40 edged up by 0.2 percent and the U.K.’s FTSE 100 added half a percent.