Sensex, Nifty Set For Steady Open

Indian shares are likely to open higher on Tuesday as investors react to a slew of earnings results announced after market hours Monday.

Axis Bank’s Q1 profit jumped 94 percent on lower provisions and higher fee income, beating estimates, while growth in net interest income came in below expectations.

Tata Motors’ consolidated net losses for the June quarter narrowed year-on-year as well as quarter-on- quarter, but lagged Street estimates.

Larsen & Toubro’s net profit and operating income missed consensus estimates, while revenue matched expectations.

Benchmark indexes Sensex and the Nifty fell modestly on Monday to snap a two-day winning streak while the rupee slipped by 2 paise to close at 74.42 against the greenback, snapping its three-day gaining streak.

Asian markets were mixed in cautious trade, with Chinese and Hong Kong shares stabilizing after steep losses the previous day on concerns over Beijing’s sweeping regulatory overhaul.

Treasuries were steady while the dollar dipped as investors looked ahead to this week’s Federal Reserve policy meeting, where officials are expected to discuss tapering plans.

Oil prices rose slightly in Asian trade amid bets that tight supply and rising vaccination rates will help offset any negative impact on demand due to surging COVID-19 cases worldwide.

Bitcoin pared gains to hold above $37,000 after briefly topping $40,000 on speculation that Amazon may soon start accepting payments in cryptocurrencies.

U.S. stocks hit fresh record closing highs overnight, as upbeat earnings news along with continued optimism about the economy offset lingering concerns about the spread of new coronavirus variants.

The Dow and the S&P 500 edged up around 0.2 percent each, while the tech-heavy Nasdaq Composite index inched up marginally.

European stocks ended mostly lower on Monday after a government crackdown pushed China stocks to their worst day in a year and a survey showed German business confidence weakened unexpectedly in July.

The pan European Stoxx 600 closed flat with a negative bias. The German DAX dropped 0.3 percent and the U.K.’s FTSE 100 finished marginally lower while France’s CAC 40 index edged up 0.2 percent.

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