Dragged by global markets Indian equities may be subdued on Tuesday. Share markets will have only three trading days this week with Monday and Wednesday being holidays due to general elections in Mumbai and Maharashtra Day, respectively.
Shares in Asia fell on Tuesday despite another record high close for the S&P 500, as investors await a US Federal Reserve policy decision for clues of whether it will continue to take a “patient" approach to interest rate policy.
Asia’s wobbly open followed cautious gains on Wall Street overnight that nevertheless lifted the S&P 500 index to an intraday record high of 2,949.52.
The quiet start to the week in global equity markets comes ahead of a two-day meeting of the policy-setting Federal Open Market Committee.
All eyes are on the US Federal Reserve meeting this week to decide on interest rates. The Fed is widely expected to leave interest rates unchanged, as it seeks to balance robust economic growth against low inflation.
Investors will also be watching manufacturing data in China, which is expected to show a steady but modest expansion in activity for April.
Back home, Yes Bank stock will be in focus after it opens for trade following its March quarter earnings announcement last Friday post markets hours. Brokerage firm Macquarie has admitted to overlooking the risks from the structured finance business of Yes Bank and has downgraded the stock by a full two notches.
Citing the management commentary following the bank reporting its first-ever loss of a whopping ₹1,506 crore for the March quarter under a new management led by Ravneet Gill, the brokerage also flagged concerns on the fee income and the retail franchise of the fifth largest private sector lender.
Meanwhile, currency markets remained quiet. The dollar index, which tracks the greenback against a basket of six major rivals, was also unchanged, holding at 97.852.
Oil prices turned lower, after edging higher on Monday as markets attempted to resume a rally interrupted by demands from US President Donald Trump that OPEC raise output.
(Reuters contributed to the story)