Sensex, Nifty Seen Flat To Higher In Cautious Trade; LIC Listing Eyed

Indian shares are seen opening flat to slightly higher on Tuesday, tracking mixed global cues and ahead of the listing of LIC shares.

The upside may be capped by interest-rate worries, with economists at SBI cautioning that the RBI will raise rates in forthcoming June and August policy and will take it to the pre-pandemic level of 5.15 percent by August.

State-run oil marketing companies and airline stocks could be in focus after jet fuel prices were hiked by a steep 5.3 percent — the tenth straight increase this year — to a record high.

Benchmark indexes Sensex and the Nifty eked out modest gains on Monday to snap a six-session losing streak.

Asian markets traded mixed this morning amid increased uncertainties to the global growth outlook.

Goldman Sachs Senior Chairman Lloyd Blankfein urged companies and consumers to brace for an imminent recession in the United States, saying it’s a “very, very high risk.”

Shanghai has set out plans for end of a painful Covid-19 lockdown after reportedly hitting a milestone of three days of zero community transmission.

Gold held steady after a pullback in the dollar and a fall in Treasury yields, while Bitcoin held near the $30,000 mark. Oil prices slipped in Asian trade after closing sharply higher on Monday.

U.S. stocks ended a volatile session mostly lower overnight amid growth worries as China data disappointed, New York state manufacturing activity unexpectedly contracted in May and the outlook for EU growth and inflation worsened.

The Dow edged up marginally while the S&P 500 slipped 0.4 percent and the tech-heavy Nasdaq Composite lost 1.2 percent.

European stocks also ended mixed on Monday as investors reacted to disappointing economic data from the U.S., Europe and China. The pan European Stoxx 600 ended flat with a positive bias.

The German DAX dipped half a percent and France’s CAC 40 index slid 0.2 percent while the U.K.’s FTSE 100 added 0.6 percent.

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