Plus   Neg

Sensex, Nifty Set For Subdued Start

Indian shares look set to open lower on Tuesday as another round of U.S.-China trade talks began with working-level talks in Beijing and uncertainty over congressional budget talks sparked talk of another possible government shutdown.

Treasury Secretary Steven Mnuchin is leading the U.S. delegation to Beijing as the world's two largest economies seek to reach a trade deal before an early March deadline, when a jump in tariffs on Chinese goods will take effect.

A report from Axios said President Donald Trump's advisers have informally discussed holding a summit with Chinese President Xi Jinping at Mar-a-Lago next month. The meeting could come as soon as mid-March though nothing is set.

Closer home, inflation data due later in the day and disappointing earnings from budget carrier SpiceJet may also keep underlying sentiment cautious somewhat.

Axis Bank shares could be in focus after the government announced it would sell part of its stake in the private sector lender held through SUUTI to raise up to Rs 5,316 crore.

Benchmark indexes Sensex and the Nifty dropped around half a percent on Monday to extend losses for a second straight session, while the rupee strengthened by 13 paise to close at 71.18 against the dollar, extending gains for the fifth straight session.

Asian stocks remain largely unchanged this morning and the dollar held firm after recent strong gains while oil edged up slightly after falling on Monday.

Overnight, U.S. stocks ended a choppy session on a mixed note. The Dow slid 0.2 percent, while the tech-heavy Nasdaq Composite and the S&P 500 inched up around 0.1 percent.

European markets rose on Monday amid hopes the U.S. and China could soon settle their trade dispute.

The pan European Stoxx 600 rose 0.9 percent. The German DAX rallied 1 percent, France's CAC 40 index climbed 1.1 percent and the U.K.'s FTSE 100 advanced 0.8 percent.

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