Sensex, Nifty Likely To Follow Global Peers Higher

(RTTNews) - Indian shares look set to open higher on Tuesday, tracking largely positive global cues and reports suggesting that the government is considering income tax rate cuts in the upcoming Budget to boost consumption in the economy and increase savings for the middle class.

Indian stock markets were closed on Monday on account of Bakri Id.

In the absence of any major domestic triggers, global cues, trading activity of foreign investors, oil price movements and monsoon updates from the IMD may sway sentiment in the truncated week.

The 30-share BSE Sensex rose 299.41 points, or 0.39 percent last week, while the broader NSE Nifty index gained 175.45 points, or 0.75 percent.

Asian markets followed Wall Street higher this morning while Treasuries held steady after falling Monday. The dollar traded weak, helping gold push higher.

Oil prices were little changed after gaining in the previous session amid rising tensions in the Middle East and optimism that oil demand will grow in the second half of this year.

U.S. stocks closed higher overnight as investors awaited a slew of economic data and comments from Federal Reserve officials later in the week.

Treasury yields climbed after data showed manufacturing activity in the New York region contracted at a notably slower rate in June, with optimism about the six-month outlook for business activity reaching a more than two-year high.

The tech-heavy Nasdaq Composite and the S&P 500 gained 1 percent and 0.8 percent, respectively to reach new record closing highs amid continued momentum for big tech stocks. The Dow edged up half a percent.

European stocks closed mostly higher on Monday after enduring their worst week since October amid political turmoil in France.

The pan European STOXX 600 ended flat with a positive bias. The German DAX rose 0.4 percent and France's CAC 40 added 0.9 percent while the U.K.'s FTSE 100 ended marginally lower.