Sensex, Nifty Set To Open Higher; RIL Shares In Focus

Indian shares look set to open a tad higher on Tuesday as traders return to their desks after a long holiday weekend.

Reliance Industries could be in focus after the company said it wants to become a zero net debt company within FY 2020-21 and plans to list both consumer businesses of Reliance Jio and Reliance Retail in the next 5 years.

The company is also selling a 20 percent stake in its oil-to-chemicals business to Saudi Arabian giant Aramco for an enterprise value of $75 billion (around Rs 5.3 lakh crore).

On the data front, official data released post market hours on Friday showed that India's industrial output grew more than expected in June.

Industrial output expanded 2 percent on a yearly basis in June, but slower than the 4.6 percent increase seen in May. Economists had forecast an annual growth of 1.4 percent.

Data on inflation and trade balance will be unveiled later in the day. Market participants also expect the government to unveil several measures this week to stimulate growth and ease the tax burden on foreign portfolio investors. The announcement, however, may not include proposal for reduction of GST rates.

Asian markets are moving lower this morning as protests in Hong Kong and a crash in Argentina's peso currency drove investors to safe haven assets such as the Japanese yen, gold and bonds. Oil prices fell slightly on worries about sluggish economic growth.

Overnight, U.S. stocks fell sharply as investors fretted about the path of U.S.-China trade negotiations and the global economic outlook.

The Dow Jones Industrial Average tumbled 1.5 percent, while the S&P 500 and the tech-heavy Nasdaq Composite slid around 1.2 percent.

European markets ended Monday's session lower, with political uncertainty in Italy, violent protests in Hong Kong and lingering worries about the U.S.-China trade dispute weighing on markets.

The pan European Stoxx 600 declined 0.3 percent. The German DAX slipped 0.1 percent, France's CAC 40 index eased 0.3 percent and the U.K.'s FTSE 100 shed 0.4 percent.

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