Sensex, Nifty Seen Lower On Weak Asian Cues

Indian shares look set to open a tad lower on Tuesday after three days of gains.

With inflationary pressures appear to be rising, the Reserve Bank of India is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022, a Japanese brokerage said.

Stock-specific action could be seen as the quarterly earnings season starts to gain momentum.

Benchmark indexes Sensex and the Nifty ended slightly higher on Monday despite mixed global cues and a disappointing earnings report from TCS.

The rupee breached the 75 level to close 37 paise lower against the dollar on worries about high crude prices.

Asian markets fell broadly this morning on concerns about spiking inflation and a global energy crisis while oil slipped for the first time in four days.

U.S. stocks fell overnight as investors fretted over rising prices and signs of slowing growth, with Goldman Sachs cutting its U.S. GDP forecast for the third month in a row.

The Dow and the S&P 500 shed around 0.7 percent while the tech-heavy Nasdaq Composite slipped 0.6 percent.

European stocks ended mixed on Monday as investors digested hawkish comments from Bank of England officials and awaited cues from the earnings season.

The pan European Stoxx 600 ended flat with a positive bias. The German DAX edged down marginally, while France’s CAC 40 index inched up 0.2 percent and the U.K.’s FTSE 100 added 0.7 percent.