Sensex, Nifty Seen Lower At Open

(RTTNews) - Indian shares are seen opening lower on Tuesday after a strong rally in the previous session.

Deepening tensions in the Middle East may keep investors worried after the U.S. told commercial ships to avoid the Red Sea following missile strikes by Houthi militants.

Meanwhile, India's trade deficit fell to three-month low of $19.8 billion in December 2023 as exports grew and imports eased, according to the commerce ministry.

Separate data showed India's wholesale inflation rose to 0.73 percent in December mainly due to a sharp rise in food prices.

Housing finance companies could be in focus today after the RBI tightened rules related to deposit acceptance.

Benchmark indexes Sensex and Nifty rose about 1 percent each on Monday as better-than-expected earnings buoyed tech stocks.

The rupee rose by 6 paise to close at 82.89 against the dollar, extending gains for the ninth consecutive session.

Asian stocks traded mostly lower this morning, with Japanese markets halting their record-breaking rally.

The dollar advanced ahead of a data-heavy week, with reports on Chinese fourth-quarter growth, British inflation and U.S. retail sales awaited. Oil edged up slightly amid heighted Red Sea tensions.

U.S. markets were closed Monday for Martin Luther King Jr. Day.

European stocks snapped last week's rally on Monday as China's central bank wrong footed markets by skipping on a rate cut and ECB officials warned cutting interest rates too fast could fuel a new wave of inflation.

The pan European STOXX 600 dropped half a percent. The German DAX slipped half a percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 eased 0.4 percent.