Sensex, Nifty May See Cautious Gains At Open

(RTTNews) - Indian shares are seen opening slightly higher on Tuesday as investors react to mixed economic data and firm global cues.

India's consumer price inflation eased further in November to the lowest level in nearly a year and came within the Reserve Bank's tolerance band of 2.0 to 6.0 percent for the first time this year, data released by the statistics ministry showed.

Consumer price inflation slowed to 5.88 percent in November from 6.77 percent in October. Analysts had forecast inflation to rise 6.4 percent.

Separate data revealed India's industrial production fell 4.0 percent year-over-year in October, reversing a 3.5 percent rebound in the previous month. In the same month of 2021, industrial output had advanced 4.2 percent.

Benchmark indexes Sensex and Nifty reversed early losses to end largely unchanged on Monday while the rupee fell by 25 paise to close at 82.53 against the greenback.

Asian markets were seeing modest gains in cautious trade, with concerns surrounding China and caution ahead of U.S. consumer inflation data due out later in the day serving to limit regional gains to some extent.

The U.S. dollar held firm ahead of this week's monetary policy meetings in the United States. Europe, United Kingdom and Switzerland.

Gold prices were little changed, while oil extended gains after climbing around 3 percent in the U.S. trading session overnight on news of supply disruptions.

The Federal Reserve, European Central Bank and the Bank of England are all expected to raise rates by 50 basis points later this week.

U.S. stocks rose sharply overnight after a New York Fed consumer expectations' survey showed inflation expectations decreased at the short, medium, and longer terms in November.

The Dow climbed 1.6 percent, the tech-heavy Nasdaq Composite rallied 1.3 percent and the S&P 500 added 1.4 percent.

European stocks ended Monday's session lower as investors braced for the release of U.S. consumer inflation data and a slew of central bank decisions.

The pan European STOXX declined half a percent. The German DAX fell half a percent, while France's CAC 40 index and the U.K.'s FTSE 100 both shed around 0.4 percent.