Sensex, Nifty Seen Lower At Open On Muted Global Cues

(RTTNews) - Indian shares may open a tad lower on Tuesday as investors react to muted global cues and a sharp rebound in crude oil prices the previous day as recession fears begin to fade.

Oil dipped slightly in Asian trade, after having climbed over 2 percent on Monday on the back of strong U.S. jobs data and the shutting in of at least 145000 of oil equivalent per day in the oil-rich province of Alberta.

Benchmark indexes Sensex and Nifty jumped more than 1 percent each on Monday on the back of fairly decent quarterly earnings updates from top companies and strong inflows from foreign institutional investors.

The rupee, however, fell by 2 paise to close at 81.80 against the dollar.

According to stock exchange data, foreign institutional investors remained net buyers of Indian equities for the eighth straight session on Monday and bought shares worth Rs 2,123 crore in the cash market.

Asian markets were broadly lower this morning, two-year Treasury yields steadied above 4 percent, gold traded flat, and the dollar inched up as investors await U.S. reports on consumer and producer price inflation, due to be released on Wednesday and Thursday, respectively, for clues on the path of interest-rate hikes by the Federal Reserve.

U.S. stocks ended mixed overnight as investors fretted about a possible U.S. debt default and looked ahead to the release of key inflation numbers due later in the week for directional cues.

The Dow eased 0.2 percent as an early rally in regional banks faded. The S&P 500 inched up marginally and the tech-heavy Nasdaq Composite added 0.2 percent.

European stocks closed mostly higher on Monday in thin trade amid a holiday in the U.K. The pan-European STOXX 600 rose 0.4 percent, led by banks and healthcare companies.

The German DAX ended flat with a negative bias while France's CAC 40 edged up 0.1 percent.