Sensex, Nifty Seen Opening Higher In Cautious Trade

(RTTNews) - Indian shares are seen opening higher on Tuesday as U.S. President Donald Trump did not immediately impose China-specific tariffs as previously promised during his first day in office.

However, Trump announced executive actions to cut energy prices and tame inflation. He also directed federal agencies to "investigate and remedy" persistent U.S. trade deficits and unfair trade practices and currency manipulation by other countries.

Benchmark indexes Sensex and Nifty both rose around 0.6 percent on Monday as investors cheered upbeat earnings news from the likes of Wipro and Kotak Mahindra Bank. The rupee finished marginally higher at 86.567 per dollar.

Stock-specific movements could be seen today as the Q3 earnings season gains momentum.

Domestic institutional investors (DIIs) bought shares worth Rs 4,321 crore on a net basis Monday, while foreign institutional investors (FIIs) sold shares to the extent of Rs 4,336 crore, according to provisional data from NSE.

Asian markets were mixed in cautious trade this morning. The U.S. dollar rebounded in Asian trade following hints from Trump about potential 25 percent tariffs on Canada and Mexico as early as February 1, though details were lacking.

Oil ticked higher despite Trump announcing to declare a national emergency to unleash domestic energy production.

Gold edged up slightly as markets evaluated the possible consequences of Trump's second-term policies post-inauguration.

U.S. stock markets were closed on Monday on account of Martin Luther King Jr. Day holiday.

European stocks closed slightly higher on Monday after reports emerged that the Trump administration will hold off on imposing trade tariffs on his first day in office.

The pan European STOXX 600 ended flat with a positive bias after having hit a three-month high earlier.

The German DAX rose 0.4 percent, France's CAC 40 added 0.3 percent and the U.K.'s FTSE 100 gained 0.2 percent.