Indian shares may open a tad higher on Tuesday, with positive global cues on the back of earnings optimism and progress on U.S. President Joe Biden’s economic agenda likely to help underpin investor sentiment.
Japanese brokerage firm Nomura has downgraded Indian markets to neutral from overweight, citing unfavorable risk-reward given high valuations.
At the same time, the brokerage expects India’s capital markets to be resilient in the event of foreign investors suddenly getting cold feet.
Benchmark indexes Sensex and the Nifty ended a choppy session slightly higher on Monday after strong results from private sector lender ICICI Bank.
Asian markets were broadly higher this morning, with Japan’s Nikkei climbing as much as 1.7 percent after a new poll suggested that Prime Minister Fumio Kishida’s ruling Liberal Democratic Party is likely to keep substantially more than half the seats in parliament in this weekend’s general election.
Gains elsewhere were modest as the debate over inflation risks intensified. The dollar steadied in choppy trade after the Treasury yield curve steepened overnight.
Gold held above $1,800 an ounce while oil edged lower after having hit $85 a barrel for the first time since 2014.
U.S. stocks advanced overnight as Tesla shares surged on a huge rental order of 100,000 cars and House Speaker Nancy Pelosi expressed confidence that congressional Democrats are near a deal on a large spending package.
The Dow edged up 0.2 percent and the S&P 500 added half a percent to reach new record closing highs while the tech-heavy Nasdaq Composite climbed 0.9 percent.
European stocks ended mostly higher on Monday as worries about China Evergrande’s debt woes eased.
The pan European Stoxx 600 ended flat with a positive bias. The German DAX rose 0.4 percent and the U.K.’s FTSE 100 gained 0.3 percent while France’s CAC 40 index dropped 0.3 percent.
Market Analysis
Sensex, Nifty Set For Positive Start
2021-10-26 02:48:28
