Sensex, Nifty To Drift Lower At Open On Muted Asian Cues

(RTTNews) - Indian shares are likely to open Tuesday's session on a sluggish note, tracking weak cues from global markets.

The RBI MPC meeting outcome scheduled for this week and anxiety ahead of next week's FOMC meeting may serve to keep underlying sentiment cautious somewhat.

While foreign institutional investors continued to be net sellers for the third consecutive session on Monday, domestic financial institutions extended their buying spree, stock exchange data shows.

Adani Group stocks could be in focus today amid news the Group has repaid loans worth $2.65 billion. Meanwhile, Wipro shareholders have approved a share buyback program worth Rs. 12,000 crore.

Benchmark indexes Sensex and Nifty rose modestly on Monday to extend gains for a second consecutive session.

The rupee dropped 37 paise to close at 82.68, suffering its sharpest single-day fall against the dollar in two-and-a-half months, on the back of strong U.S. jobs data and OPEC's decision over the weekend to reduce global oil production.

Asian markets traded mixed this morning while gold steadied after rising in the previous session.

The dollar index was flat after declining on Monday. Oil prices fell in cautious trade as investors weighed the outlook for supply and demand.

U.S. stocks ended a choppy session lower overnight after data showed growth slowed in the country's services sector in May and new orders for manufactured goods rose by slightly less than expected in April.

The Dow fell 0.6 percent, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite finished marginally lower.

European stocks closed lower on Monday as data showed a slowdown in Eurozone private sector growth and ECB President Christine Lagarde said the central bank will likely maintain its current policy trajectory.

The pan European STOXX 600 shed half a percent. The German DAX dropped half a percent, France's CAC 40 lost 1 percent and the U.K.'s FTSE 100 ended little changed with a negative bias.