Sensex, Nifty Seen Lower On Global Cues
(RTTNews) - Indian shares may open lower on Tuesday, mirroring weak global cues. The downside, however, may remain limited on expectations the Reserve Bank of India (RBI) will cut interest rates for the sixth straight time on December 5 despite a surprise spike in inflation.
Meanwhile, replying to a debate on Taxation Law Amendment Bill, 2019 in the Lok Sabha, Finance Minister Nirmala Sitharaman allayed fears of corporate tax reduction impacting revenue collection. There is an increase of 5 percent in the gross direct tax collection till November this fiscal, she said.
Benchmark indexes Sensex and the Nifty ended on a flat note on Monday even as shares of telecom companies soared after tariff hike announcements. The rupee settled 8 paise higher at 71.66 against the U.S. dollar.
Asian markets fell this morning after China announced sanctions against several U.S. non-government organizations for encouraging protesters to "engage in extremist, violent and criminal acts" and said it would now allow U.S. military ships and aircraft to visit Hong Kong.
U.S. Treasury yields dipped and the dollar held near a one-week low versus the yen while oil extended gains on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week.
U.S. stocks fell sharply overnight as factory activity contracted further in November and President Trump said he would reinstate tariffs on metal imports from Brazil and Argentina.
The Dow Jones Industrial Average dropped 1 percent, the tech-heavy Nasdaq Composite shed 1.1 percent and the S&P 500 declined 0.9 percent.
European markets ended deep in the red on Monday after the release of downbeat U.S. data and a fresh flare-up in trade tensions.
The pan-European Stoxx 600 index gave up 1.6 percent. The German DAX slumped 2.1 percent, France's CAC 40 index lost 2 percent and the U.K.'s FTSE shed 0.8 percent.