Plus   Neg

Sensex, Nifty To Open Flat To Higher

Indian shares look set to open flat to slightly higher on Tuesday, reflecting optimism about high-level trade talks between the U.S. and China in Beijing.

Deputy U.S. Trade Representative Jeffrey Gerrish is leading the U.S. team at the two-day meeting that began on Monday, with a spokesman for China's Foreign Ministry predicting "positive and constructive discussions."

Meanwhile, in a significant move ahead of the Lok Sabha elections, the Union Cabinet on Monday approved 10 percent reservation for economically weaker in the general category.

Benchmark indexes Sensex and the Nifty rose for the second straight session on Monday, although stocks ended off their day's highs ahead of quarterly earnings from IT majors due later this week.

The rupee hit a six-month high before ending up by 4 paise at 69.68 against the dollar following dovish stance by the Federal Reserve and on news about resumption of trade talks between the U.S. and China.

Asian stocks are moving higher for the third straight session and the dollar is losing momentum while emerging market currencies are on the rise on hopes for a U.S.-China trade deal.

Oil prices rose further to extend gains for the seventh session on reports that Saudi Arabia is set to significantly reduce crude exports by the end of this month.

U.S stocks rose overnight as the U.S. and China resumed talks on their trade war and Federal Reserve Chair Jerome Powell said the central bank would be "flexible" in its approach to monetary policy.

The Dow rose 0.4 percent, the tech-heavy Nasdaq Composite rallied 1.3 percent and the S&P 500 climbed 0.7 percent.

European markets fell slightly on Monday on concerns about slowing growth, Brexit and the U.S government shutdown. The pan-European Stoxx Europe 600 index eased 0.2 percent. The German DAX also dropped 0.2 percent, while France's CAC 40 index and the U.K.'s FTSE 100 shed around 0.4 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT