Trends on SGX Nifty indicate a positive opening for the index in India with a 45-points gain. The Nifty futures were trading at 17,420 on the Singaporean Exchange around 07:30 hours IST.
Indian markets could open mildly higher, in line with largely positive Asian markets today and positive Dow Jones index in US markets on Monday, said Deepak Jasani, Head-Retail Research, HDFC Securities.
"Nifty is expected to open positive at 17,405, up by 40 points since yesterday's close. Since the last few trading sessions Nifty has been taking strong support in the 17,250-17,300 range and has been facing resistance in the 17,420-17,450 range. A close above 17450 with higher than average volumes may take Nifty to 17,550. Traders in long positions should consider booking profits if Nifty closes below 17,250," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
The S&P 500 closed higher on Monday, ending a five-day losing streak as investors focused on potential corporate tax hikes and upcoming economic data. The Dow Jones Industrial Average also advanced, but the Nasdaq Composite Index ended lower.
The Dow Jones Industrial Average rose 261.91 points, or 0.76 percent to 34,869.63, the S&P 500 gained 10.15 points, or 0.23 percent, at 4,468.73 and the Nasdaq Composite dropped 9.91 points, or 0.07 percent, to 15,105.58.
Asian markets mixed
Shares in Asia-Pacific were mixed in Tuesday morning trade as investors look ahead to the release of US consumer inflation data for August.
The Nikkei 225 in Japan rose 0.8 percent while the Topix index advanced 0.66 percent. South Korea’s Kospi gained 0.83 percent.
US government bond yields dipped on Monday with markets looking ahead to consumer inflation data on Tuesday that is expected to show a continuing slowdown in the pace of price increases.
Yields are seen remaining in a tight range after last week's 10- and 30-year auctions were met with strong demand.
Dollar declines
The dollar was down on Tuesday morning in Asia, as investors await U.S. inflation data that could provide a clue to the U.S. Federal Reserve’s timetable for asset tapering.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.06 percent to 92.597 by 10:21 PM ET (2:21 AM GMT), after retreating from a two-week high of 92.887 hit earlier on Monday.
The USD/JPY pair inched up 0.10 percent to 110.08.The AUD/USD pair inched down 0.05% to 0.7362 and the NZD/USD pair inched down 0.10 percent to 0.7114.The USD/CNY pair inched down 0.02 percent to 6.4495 and the GBP/USD pair inched up 0.08 percent to 1.3847.
Oil extends gains
Oil prices extended gains on Tuesday, hovering near a six-week high, on signs another storm could affect output in Texas this week even as the US industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast.
Brent crude rose 15 cents, or 0.2 percent to $73.66 a barrel by 0048 GTM, having gained 0.8 percent the previous day. U.S. West Texas Intermediate (WTI) crude also climbed 23 cents, or 0.3 percent, to $70.68 a barrel, after rising 1.1 percent on Monday.
Gold advances
Gold held an advance as investors waited for US inflation data that may affect when the Federal Reserve will start reducing stimulus.
Consumer price index data due later Tuesday are expected to show an annual pace of inflation of 5 percent or more for a fourth month. This follows a report last week which showed the producer price index for final demand rose to a fresh series high as persistent supply chain disruptions pushed costs higher.
Bullion is trading below $1,800 an ounce as traders weigh risks from the delta virus variant and elevated inflation.
If consumer prices come in hotter-than-expected, expectations for when the Fed could start tapering bond purchases could shift to November from December, according to Edward Moya, a senior market analyst at Oanda Corp.
Consumer Price Index-based Inflation (CPI) for August 2021 came in at 5.30 percent, compared with 5.59 percent in July, as food prices cooled further, especially in the case of vegetable inflation, data released by the National
Statistical Office (NSO) showed on September 13. Consumer Food Price Inflation (CFPI) for August stood at 3.11 percent compared to 3.96 percent in July.
However, concerns remained with high edible oil prices, which registered an increase of 33 percent year-on-year (YoY).
RBI selects 8 entities
The Reserve Bank of India (RBI) on September 13 announced that it has selected eight entities for the second cohort of regulatory sandbox on cross- border payments. RBI had received 27 applications from 26 entities, of which, only eight have been selected. The entities will be allowed to commence testing of their products from the third week of September, RBI said in a release.
Five stocks under F&O ban
Five stocks - Canara Bank, Exide Industries, Indiabulls Housing Finance, LIC Housing Finance and NALCO - are under the F&O ban today.
