Sensex, Nifty Seen Marginally Higher At Open

(RTTNews) - Indian shares look set to open higher on Tuesday, mirroring positive cues from global markets.

The upside, if any, may remain capped due to the rupee's ongoing weakness on the back of continued outflow of foreign funds and signs of slowing corporate earnings growth due to a weak demand environment.

Benchmark indexes Sensex and Nifty fell around 0.7 percent and 0.8 percent, respectively on Monday after U.S. President Donald Trump announced new measures related to trade tariffs.

The Indian rupee weakened to a new record low at 88-to-a-dollar before closing at 87.48.

Asian markets were mostly higher this morning, with mainland Chinese and Hong Kong stocks slipping into the red.

U.S. stock futures fell, while the dollar and bullion rallied after U.S. President Donald Trump imposed 25 percent tariffs on all U.S. imports of steel and aluminum but said he would consider an exemption for Australia.

Apart from trade tensions, investors also eye key U.S. inflation data and Fed Chair Jerome Powell's testimony before Congress this week for clues on the economic and rate outlook.

Oil steadied after the biggest gain in almost four weeks on signs of tighter Russian crude supply.

U.S. stocks shrugged off tariff tensions and inflation-related worries to end on a firm note overnight, led by steelmakers, Nvidia and other AI-related stocks.

In economic news, a survey showed expected inflation rates over the next year and three years ahead were both unchanged in January at 3 percent.

The tech-heavy Nasdaq Composite rallied 1 percent, the S&P 500 added 0.7 percent and the Dow edged up by 0.4 percent.

European markets closed mostly higher on Monday amid optimism about more easing by the European Central Bank.

The pan European STOXX 600 inched up 0.6 percent to reach a record high. The German DAX gained 0.6 percent, France's CAC 40 rose 0.4 percent and the U.K.'s FTSE 100 climbed 0.8 percent.