Indian shares are set to open higher on Tuesday, tracking a rebound in global stocks ahead of the key U.S. inflation data and the Federal Reserve's interest rate decision.
The GIFT Nifty was at 25,035 points, as of 08:06 a.m. IST, indicating the NSE Nifty 50 will open above its previous close of 24,936.4.
The benchmark Nifty 50 rose for the first time in four sessions on Monday, led by gains in consumer stocks and financials. However, all the other sectors and broader small- and mid-caps logged losses.
With most segments of the markets trading at valuations above long-term averages, focus shifts to global cues, according to analysts.
"A lot will depend on the performance of global markets, particularly the U.S., given the lack of major domestic triggers," said Ajit Mishra, senior vice president of research at Religare Broking.
Wall Street equities closed higher overnight, bouncing back from a weekly drop on Friday after mixed labour market data.
Focus now shifts to the U.S. consumer price index, due on Wednesday, which is expected to show that inflation remains on the path back to the Fed's target.
The reading will be a crucial factor influencing the size of the expected Fed rate cut next week.
Most European equities also gained on Monday on the prospect of a central bank rate cut later in the week.
Asian markets opened higher on Tuesday, though concerns over China's growth outlook kept sentiment in check. [MKTS/GLOB]
Both foreign portfolio investors (FPI) and domestic institutional investors (DII) were net buyers on Monday, purchasing domestic shares worth 11.77 billion rupees ($140.2 million) and 17.57 billion rupees, respectively.
Among individual stocks, drug makers Zydus Lifesciences, Alkem Laboratories, Cipla, Biocon, Abbott India, AstraZeneca Pharma India will be in focus, after India's goods and services tax council recommended a reduction in tax rates on select cancer drugs.
STOCKS TO WATCH
** Snack-making companies like Gopal Snacks, Prataap Snacks, Bikaji Food will be in focus after GST council recommends cutting tax rate on Namkeens to 12% from 18%.
** HG Infra Engineering secures a project worth 7.81 billion rupees from Ministry of Road Transport and Highways.
** Ahluwalia Contracts bags two orders worth 13.07 billion rupees from Signature Global for housing projects.
($1 = 83.9600 Indian rupees)