Sensex, Nifty Seen Tad Higher As India Records Current Account Surplus

(RTTNews) - Indian shares may open on a positive note Tuesday after RBI data showed India's current account balance recorded a surplus of $5.7 billion, or 0.6 percent of GDP in the January-March 2024 quarter, driven by a lower merchandise trade deficit.

That said, mixed global cues and rising oil prices may result in volatility as the session progresses.

Telecom stocks could be in focus today as the latest auction of 5G airwaves worth over Rs 96,000 crore commences later today.

Benchmark indexes Sensex and Nifty fluctuated before finishing up around 0.2 percent each on Monday. The rupee added 10 paise to settle at 83.47 against the dollar.

Asian markets traded mixed this morning and the dollar slipped from an eight-week high against the Japanese yen while Treasury 10-year yields steadied after falling slightly in the previous session.

Gold edged lower after a top Federal Reserve official said that high interest rates are still needed to lower inflation.

Oil was little changed after moving higher on Monday as investors weighed the potential fallout from rising geopolitical tensions from Yemen to Russia.

Houthi militants are attacking commercial ships off Yemen with increasing — and sometimes deadly — effectiveness, while Russia squarely blamed the United States for a missile strike on occupied Crimea and warned of "consequences."

U.S. stocks ended mixed overnight as a selloff in tech shares led by Nvidia continued, offsetting bets on Federal Reserve interest rate cuts this year.

The Dow climbed 0.7 percent to extend gains for a fifth straight session while the S&P 500 dipped 0.3 percent and the tech-heavy Nasdaq Composite shed 1.1 percent.

European stocks closed on a firm note Monday as bond yields eased, and the EU and China agreed to hold talks on planned electric vehicle tariffs.

The pan European STOXX 600 advanced 0.7 percent. The German DAX gained 0.9 percent, France's CAC 40 rallied 1 percent and the U.K.'s FTSE 100 inched up half a percent.