Sensex, Nifty Set To Open Higher After Wall Street Rally

(RTTNews) - Indian shares look set to open on a positive note Tuesday, though oil price movements, the direction of rupee and caution ahead of a holiday on Wednesday might induce some volatility as the session progresses.

IT stocks could be in focus following reports that top firms such as Wipro, Infosys and Tech Mahindra have revoked offer letters given to freshers still waiting for their onboarding process to start.

Benchmark indexes Sensex and the Nifty ended down over 1 percent each on Monday while the rupee fell by 42 paise to close at 81.82 against the greenback.

Asian markets followed Wall Street higher this morning and the British pound rose to a fresh post-budget high, while oil prices continued to rise after climbing more than 4 percent in the previous session on expectations that OPEC and other major producers will slash output this week.

U.S. stocks rallied overnight as bargain hunters stepped in after a September selloff not seen in decades.

The dollar eased and Treasury yields turned lower as British officials abandoned a tax cut plan and new data showed U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years, boosting hopes that the Fed will ease the force of its tightening.

The Dow soared 2.7 percent to record its best single day gain in over seven months, while the S&P 500 surged 2.6 percent and the tech-heavy Nasdaq Composite added 2.3 percent.

European stocks ended Monday's session higher after seeing some strong buying in the final hour of trade.

The pan European Stoxx 600 gained 0.8 percent. The German DAX rose 0.8 percent, France's CAC 40 index edged up 0.6 percent and the U.K.'s FTSE 100 added 0.2 percent.