Sensex, Nifty Set To Follow Asian Peers Higher

Indian shares look set to open on a solid footing Tuesday as investors react to positive global cues and mixed trade data.

India’s merchandise exports rose 16.78 percent in June but the trade deficit ballooned to a record $25.63 billion, pushed by a rise in crude oil and coal imports, preliminary data showed.

The government is taking steps to deal with the high crude oil prices, will address volatility in rupee and is committed to the fiscal consolidation path, a top government official reportedly said.

Financials could be in focus after the merger of HDFC and HDFC Bank received approval from the Reserve Bank of India.

Benchmark indexes Sensex and the Nifty reversed early losses to end about half a percent higher on Monday, supported by steady buying in banking and FMCG stocks. The rupee recouped losses to end little changed at 78.95 against the dollar.

Asian markets rose along with U.S. equity futures amid speculation that the Biden administration could scrap some Trump-era tariffs on Chinese consumer goods.

Gold dipped slightly as the dollar strengthened and U.S. Treasury yields bounced back ahead of the Fed meeting minutes and the U.S. nonfarm payrolls report due this week.

Oil extended gains after rising more than 2 percent on Monday amid supply concerns, driven by lower OPEC output and a strike in Norway.

U.S. markets were closed on Monday for the Independence Day holiday.

European stocks ended broadly higher on Monday boosted by gains in oil & gas companies.

The pan European Stoxx 600 rose half a percent. France’s CAC 40 index gained 0.5 percent and the U.K.’s FTSE 100 climbed 0.9 percent while the German DAX slipped 0.3 percent after the country reported its first monthly trade deficit in over 30 years in May.