Indian Shares Set For Muted Open

(RTTNews) - Indian shares are likely to open on a muted note Tuesday as traders react to significant crypto liquidations and rising Treasury yields.

A weakening rupee due to FII selling, uncertainty around key trade negotiations with the United States and caution ahead of the Reserve Bank of India's monetary policy decision may also keep investors on edge.

Benchmark indexes Sensex and Nifty gave up early gains to end marginally lower on Monday.

The rupee fell by 8 paise to close at 89.53 against the U.S. dollar, pressured by a widening trade deficit.

Foreign investors were net sellers of shares to the extent of Rs. 1,171 crore on Monday, while domestic institutional investors (DIIs) net bought shares worth Rs 2,559 crore, according to provisional exchange data.

Asian markets were modestly higher this morning, with a Japanese government bond auction and China property jitters in focus.

Treasuries steadied after falling across the curve on Monday. The dollar remained under pressure as weak manufacturing data boosted the case for a Federal Reserve rate cut next week.

Gold ticked lower after hitting a six-week high on Monday. Oil was little changed after rising sharply in the previous session amid supply chain disruptions.

U.S. stocks ended firmly in the red overnight after closing higher for five consecutive sessions. Risk aversion spread across markets as Treasury yields surged following weakness in Japanese and European government bonds.

Weak U.S. manufacturing data and a sell-off in cryptocurrencies also weighed on markets. The Dow dipped 0.9 percent, the tech-heavy Nasdaq Composite shed 0.4 percent and the S&P 500 dropped half a percent.

European stocks closed broadly lower on Monday as data showed Eurozone manufacturing slipped back into contraction in November.

The pan European Stoxx 600 slid 0.2 percent. The German DAX lost 1 percent, France's CAC 40 eased 0.3 percent and the U.K.'s FTSE 100 slipped 0.2 percent.