Indian shares are seen opening lower on Tuesday following two consecutive sessions of gains. With the RBI maintaining status quo on key policy rates, investors will watch the rupee movement closely for clarity on the future direction of monetary policy.
Indian shares rose notably on Monday, extending Friday's rally, after the Reserve Bank of India said a durable receding of inflation will open up the space for monetary policy to continue to address risks to growth. The benchmark Sensex and the broader Nifty index rose 0.8 percent and 0.7 percent, respectively.
The Indian rupee, meanwhile, ended down 34 paise to close at 57.87 per dollar after provisional data revealed India's trade deficit widened in May, driven by a jump in gold imports, exerting further pressure on the current account deficit.
According to the BSE data, FIIs continued to remain net sellers offloading shares worth Rs. 165.09 crore on Monday, while domestic financial institutions bought shares to the extent of Rs.361.52 crore.
In corporate news, Polaris Financial Technology has received an order to develop the online mutual fund platform to be implemented by the Association of Mutual Funds in India.
Jet Airways expects to reduce its debt burden to more manageable level by end of next fiscal, the Business Standard reported.
The Maldives anti-corruption watchdog said that there was no corruption involved in the bid evaluation phase of the Male airport contract that was awarded to GMR by the previous administration.
Asian Markets
Asian stocks are trading mostly lower despite a rise in global markets overnight. Investors turned cautious after the Financial Times reported the Fed will signal plans to taper its bond-buying program following the conclusion of its two-day policy meeting on Wednesday.
Japan's Nikkei index is down 0.7 percent, snapping a two-day winning streak, while Australia's All Ordinaries index is declining 1.1 percent, China's Shanghai Composite is down half a percent, Hong Kong's Hang Seng is losing 0.6 percent and South Korea's Kospi is edging down marginally.
U.S. And European Markets
U.S. stocks ended well off their day's highs overnight, as lingering worries about the Federal Reserve's future policy tempered investor optimism over upbeat data on regional manufacturing activity and confidence among homebuilders. The Dow rose 0.7 percent, while the tech-heavy Nasdaq and the S&P 500 added about 0.8 percent each.
US home-builder confidence surged to its highest level in seven years in June, while manufacturing activity in the New York region improved modestly in the month, separate reports showed.
European stocks gained ground on Monday as traders looked ahead to the Federal Reserve's upcoming policy meeting with an eye over the G-8 summit in Northern Ireland where trade, taxes and transparency are on the agenda. The U.K.'s FTSE 100 posted a modest 0.4 percent gain, while benchmark indexes in Germany, Switzerland and France closed up between 1.1 percent and 1.5 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.