Sensex, Nifty Seen Lower As Oil Prices Climb

(RTTNews) - Indian shares are seen opening on a cautious note on Tuesday after three days of gains. Bond yields rose and crude prices climbed on global supply concerns, denting risk sentiment.

Benchmark indexes Sensex and the Nifty rose for a third straight session on Monday to hit a more than two-week high, while the rupee ended almost flat at 78.34 against the dollar.

Asian markets traded mixed this morning as a rise in crude prices and Treasury yields brought inflation and rate hike worries back into focus.

The downside, if any, was capped after People's Bank of China Governor Yi Gang vowed to maintain supportive monetary policy to boost economic recovery from the COVID-19 pandemic.

The dollar held modest overnight gains and Treasury yields climbed on the back of positive U.S. data released overnight, while oil prices rose over 1 percent in Asian trade after the United Arab Emirates' energy minister said the nation has no spare capacity.

Meanwhile, the Group of Seven nations promised to tighten the squeeze on Russia's finances with new sanctions that include a plan to cap the price of Russian oil.

U.S. stocks struggled for direction before finishing lower overnight, as Moscow defaulted on its sovereign debt for the first time since 1918 and oil prices rose amid efforts by G7 countries to try to cap the price that importers pay for Russian crude.

The Dow slipped 0.2 percent, the S&P 500 eased 0.3 percent and the tech-heavy Nasdaq Composite shed 0.7 percent despite positive durable goods orders and housing data.

European stocks closed at a two-week high on Monday as an easing of COVID-19 restrictions boosted miners and energy stocks.

The pan European Stoxx 600 gained half a percent. The German DAX rose half a percent and the U.K.'s FTSE 100 climbed 0.7 percent while France's CAC 40 index slipped 0.4 percent.