Sensex, Nifty Seen Tad Higher At Open

Indian shares are seen opening a tad higher on Tuesday despite broadly weak cues from global markets.

Overall gains may remain limited and volatility cannot be ruled out ahead of key U.S. and GDP readings due this week and the expiry of February series derivative contracts.

Benchmark indexes Sensex and Nifty ended down around half a percent each on Monday after a choppy session. The rupee settled 2 paise higher at 82.89 against the dollar.

Asian markets traded mixed this morning ahead of key inflation readings due in the U.S. and Europe this week that could provide further clues on the prospects of early rate cuts.

The dollar traded on the back foot as Japanese inflation topped forecasts, stoking speculation the Bank of Japan would exit negative rates by April.

Meanwhile, Kansas City Federal Reserve Bank President Jeffrey Schmid said in a debut speech on Monday that the U.S. central bank is in no rush to cut interest rates.

Gold ticked higher while oil prices slipped after ending sharply higher overnight on heightened Middle East tensions.

U.S. stocks ended lower overnight as investors awaited key economic readings later in the week for clues on the rate outlook.

Earlier in the day, data showed sales of new U.S. single-family homes rose less than expected in January.

The Dow eased 0.2 percent, the tech-heavy Nasdaq Composite slid 0.1 percent and the S&P 500 gave up 0.4 percent.

European stocks closed broadly lower on Monday as U.S. and Eurozone inflation data loomed.

The pan European STOXX 600 slipped 0.4 percent. France’s CAC 40 shed half a percent and the U.K.’s FTSE 100 dipped 0.3 percent while the German DAX finished marginally higher.