Sensex, Nifty Seen Lower On Weak Asian Cues

Indian shares are seen opening lower on Tuesday as investors react to mixed economic data and weak global cues.

India’s consumer price inflation gained marginally to an eight-month high of 6.07 percent in February from 6.01 percent in January, official data showed. Analysts say that higher cost-push inflation will feed into broader price pressures in the coming months.

India’s exports jumped 25 percent year-on-year in February but the trade deficit also widened after hitting a five-month low in January, final data released by commerce and industry ministry showed.

Benchmark indexes Sensex and the Nifty jumped round 1.7 percent and 1.5 percent each on Monday to extend gains for the fifth straight session, while the rupee fell by 11 paise to close at 76.55 against the dollar.

Asian stocks were mostly lower, with Chinese and Hong Kong markets leading regional losses, as data showed China’s new Covid-19 cases more than doubled from the previous day.

The dollar index eased slightly while gold held a drop on rising yields ahead of a key Federal Reserve meeting.

Oil dipped more than 4 percent in Asian trade, after having fallen as much as 5.8 percent in U.S. trading on hopes of progress in the peace talks between Russia and Ukraine.

The fourth round of talks failed to deliver a breakthrough on Monday but further talks to ease the crisis will continue today.

U.S. stocks ended mostly lower overnight as Treasury yields spiked ahead of an expected hike in interest rates.

The tech-heavy Nasdaq Composite plunged 2 percent to hit its lowest closing level in over a year and the S&P 500 shed 0.7 percent while the Dow ended flat after climbing as much as 450 points in early trade.

European stocks rallied on Monday as a sharp fall in crude oil prices helped ease inflation concerns and there were some signs of diplomatic progress in peace talks between Russia and Ukraine.

The pan European Stoxx 600 climbed 1.2 percent. The German DAX surged 2.2 percent, France’s CAC 40 index jumped 1.8 percent and the U.K.’s FTSE 100 added half a percent.