Sensex, Nifty Seen Higher At Open Amid Tech Recovery

Indian shares look set to open higher on Tuesday after the Wall Street put up a strong show overnight, led by gains in the tech sector.

Meanwhile, the first revised estimates of gross domestic product (GDP) data released by the National Statistical Office showed India’s GDP contracted 6.6 percent in FY21, a tad lower than the 7.3 percent droop estimated earlier.

On the earnings front, Tata Motors narrowed its Q3 loss while HPCL’s Q3 consolidated net profit fell 43 percent from last year.

The Budget will be key for markets amid concerns over likely populist measures ahead of key state elections. The government is scheduled to present the Union Budget 2022 at 11:00 AM.

Benchmark indexes Sensex and the Nifty jumped around 1.4 percent each on Monday after beaten-down tech stocks powered a strong rebound on Wall Street Friday. The rupee rose by 45 paise to close at 74.62 against the dollar.

Asian markets were broadly higher in thin trade, with Chinese, Hong Kong and Seoul markets closed for the Chinese New Year break.

Gold held steady on dollar weakness while oil edged higher to trade at seven-year highs amid bets that supplies will stay tight.

U.S. stocks ended the last trading day of January on a high note but still chalked up the worst month since March 2020.

Markets surged for a second day as traders continued to pick up tech stocks at reduced levels following positive analyst comments.

The tech-heavy Nasdaq Composite rallied as much as 3.4 percent, while the Dow rose 1.2 percent and the S&P 500 added 1.9 percent.

European stocks also moved to the upside on Monday, with tech and energy stocks leading the surge.

The pan European Stoxx 600 gained 0.7 percent. The German DAX added 1 percent and France’s CAC 40 index rose half a percent while the U.K.’s FTSE ended flat with a negative bias.