Sensex, Nifty Seen Tad Lower At Open As Oil Prices Surge

(RTTNews) - Indian shares may open a tad lower on Tuesday as oil traded near a two-month high amid an escalation in tensions in the Middle East and concerns over the rapid start to the Atlantic hurricane season.

Oil & gas stocks could be in focus after the government raised the windfall tax on petroleum crude to 6,000 rupees per metric ton from 3,250 rupees, effective from July 2.

Investors may also react to monthly auto sales figures and signs of slowing growth in GST collection to a three-year low in June.

Benchmark indexes Sensex and Nifty both rose around 0.6 percent each on Monday while the rupee dropped 11 paise to close at 83.45 against the dollar.

Asian markets fluctuated this morning due to pessimism about China's economy, Fed rate uncertainty and worries about the potential economic implications of the November U.S. election outcome, with the U.S. apex court ruling ex-presidents have "broad immunity" in a Washington case against former president Donald Trump.

Higher yields lifted the dollar and gold was marginally higher while oil extended gains after climbing nearly 2 percent in the overnight U.S. trading session.

U.S. stocks closed higher overnight as data showed manufacturing contracted for a third straight month in June and prices paid by manufacturers dropped to a six-month low - adding to bets the Fed will start reducing interest rates in September.

The Dow edged up 0.1 percent, the S&P 500 added 0.3 percent and the tech-heavy Nasdaq Composite surged 0.8 percent.

European stocks gained on Monday, the euro hit its strongest level since mid-June and the premium investors demand for holding France's bonds plunged, as initial results from France's election showed a smaller lead for the far-right than expected.

The pan European STOXX 600 rose 0.3 percent. The German DAX inched up 0.3 percent, France's CAC 40 rallied 1.1 percent and the U.K.'s FTSE finished marginally higher.