Sensex, Nifty Seen Little Changed At Open

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Sensex, Nifty Seen Little Changed At Open

(RTTNews) - Indian shares may open on a flat note Tuesday as bond yields held steady at 2024 high ahead of U.S. inflation data, the release of FOMC minutes and the ECB policy meeting.

Doubts crept in about a possible Fed rate cut this year after Lorie Logan, president of the Federal Reserve Bank of Dallas, warned that it's premature to consider lowering interest rates.

Fed Governor Michelle Bowman also echoed concerns about potential upside risks to inflation, while Chicago Fed President Austan Goolsbee said the U.S. central bank must weigh how long it can maintain the policy restrictive without damaging the economy.

Minneapolis counterpart Neel Kashkari said the Fed cannot 'stop short' on the inflation fight as oil prices creep higher.

Trading volumes are likely to remain thin today due to the Gudi Padwa festival, an auspicious Marathi festival celebrated mainly by the people of Maharashtra.

Benchmark indexes Sensex and Nifty jumped around 0.7 percent each on Monday while the rupee settled on a flat note at 83.31 against the dollar.

Asian markets traded mixed this morning, the dollar was tentative, and gold hovered slightly below a record high, while oil held near a five-month high amid simmering tensions in the Middle East and persistent supply concerns.

Hamas has rejected Israel's latest ceasefire proposal made at talks in Cairo. Benjamin Netanyahu said Israel had set a date for a ground offensive in Rafah - which he has long been warned against.

U.S. stocks fluctuated before eventually closing narrowly mixed overnight as 10-year yields spiked to five-month highs ahead of commentary from Fed officials and more U.S. data, including the closely watched inflation readings.

The Dow and the S&P 500 both slipped marginally while the tech-heavy Nasdaq Composite ended flat with a positive bias.

European stocks closed higher on Monday after encouraging data on euro area investor confidence and German industrial production.

The pan European STOXX 600 gained half a percent. The German DAX climbed 0.8 percent, France's CAC 40 added 0.7 percent and the U.K.'s FTSE 100 rose 0.4 percent.

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