The Indian market is seen opening flat to slightly lower on Tuesday, tracking tepid global cues. U.S. stocks fell overnight and most Asian stocks are declining this morning due to the impasse in the U.S. debt-ceiling talks.
Fitch Ratings reiterated that it will place the U.S. sovereign rating on Rating Watch Negative if the debt limit is not raised by August 2nd, although the agency said it remains of the opinion that an agreement will be reached to raise the debt ceiling prior to the decline.
Investors also fear that growing uncertainty over debt problems in Europe could hinder the global economic recovery. Although only 8 of the 91 banks surveyed failed the most recent batch of stress tests, the euro zone's regulatory stress tests were viewed as not stringent enough.
Closer home, private sector lender HDFC Bank, software services exporter Wipro, Ashok Leyland Blue Dart and Crompton Greaves are among the bluechip companies that will unveil their quarterly results today.
According to provisional data released by BSE, foreign institutional investors sold shares worth Rs.93.01 crore on a net basis yesterday, while domestic financial institutions bought shares to the extent of Rs.163.62 crore.
Meanwhile, fearing a sharp slowdown in credit offtake, lenders on Monday asked the Reserve Bank of India to take a pause and not hike interest rates in its monetary policy review next week. The plea to maintain status quo on interest rates was made at a customary pre-monetary policy meet between the central bank and senior bankers.
The benchmark indexes Sensex and the Nifty ended down about 0.3 percent each on Monday, as domestic concerns over inflation and interest rates and the debt issues in the U.S. and European Union kept investors on the sidelines.
On Wall Street, stocks ended notably lower on Monday amid continued uncertainty about the U.S. debt limit and on lingering concerns about the debt crisis in Europe. Closing well off their worst levels of the day, the Dow and the S&P 500 ended down about 0.8 percent each, while the Nasdaq fell 0.9 percent.
Crude oil prices declined on Monday amid growing fears about likely debt default in Europe and the United States. The possibility of an emergency stock release from the International Energy Agency too contributed to the crude's decline. Light sweet crude for August delivery ended down $1.31 at $95.93 a barrel on the New York Mercantile Exchange.
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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.