BENGALURU: Indian shares are set to open lower on Tuesday, tracking Asian peers, as expectations of likely delay in US rate cuts added to investor concerns already weighed by geopolitical tensions in the Middle East.
India’s GIFT Nifty was trading at 22,167 as of 7:56 a.m. IST, indicating that the NSE Nifty 50 will open below its Monday’s close of 22,272.50.
Asian markets opened lower on Tuesday, following a lower close in the Wall Street overnight, after stronger-than-expected US retail sales data added to fading expectations of an early Federal Reserve rate cut.
The odds of a rate pause in July rose above 50% after the data, from 43.5% a day ago, according to CMEGroup’s FedWatch Tool.
Gold and the US dollar both climbed, as risk assets continued to remain under pressure due to geopolitical tensions after Iran launched explosive drones and missiles at Israel on Saturday.
Foreign portfolio investors (FPIs) sold a net 32.68 billion rupees (about $391 million) worth of Indian stocks on Monday, after offloading 80.27 billion rupees of shares in the previous session.
Indian shares set to open lower on Middle East geopolitical woes
Domestic institutional investors have been net buyers for five sessions in a row.
India’s benchmark indexes Nifty 50 and S&P BSE Sensex have dropped about 2% each in two sessions, from their record closing highs.
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