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Indian markets are likely to open marginally lower on Tuesday tracking losses in SGX Nifty index.

In early morning SGX Nifty was down 0.04%.

Equity markets on Monday lost nearly 1.74% over worries that the return of covid-19 curbs in various states could derail economic recovery.

On Monday, India reported over 97,000 fresh cases against 1 lakh cases on Sunday. Maharashtra reported 47,288 new cases with 155 deaths.

“Domestically, concerns over the fast spreading 2nd wave of Covid in India continues to remain. Economic activities might take a hit due to partial lockdowns and markets would react accordingly in coming weeks. Overall markets are likely to remain in a consolidative mode for some time awaiting for fresh positive triggers" said Motilal Oswal in a note to its investors.

Asian stocks were mixed on Tuesday as traders assessed a strengthening US economic recovery, the prospect of higher taxes there and restrictions in Europe to curb the coronavirus. Oil clawed back some losses.

Equities dipped in Japan and China but outperformed in Australia. Treasury yields edged lower. Oil rose above $59 a barrel after sliding amid growing delays in Europe’s reopening and looming Iranian supply.

Domestically, investors will eye March quarter earnings that will start from mid April. Analysts broadly expect another robust quarter with double-digit revenue and profit growth.

However, management guidance on the impact of the second covid-19 wave will be a key variable that analysts will look out for, in addition to the effect of rising global commodity prices on margins.

Near-term market direction will also depend on the Reserve Bank of India’s monetary policy announcement on Wednesday. While analysts do not see any immediate change in the monetary policy and expect the rate-setting panel to maintain a dovish stance to address economic growth concerns, they will be on the lookout for the central bank’s views on economic recovery amid rising covid-19 cases and its update on inflation projection.

US Fed March meeting minutes will be announced on Wednesday.

Among stocks, HDFC Bank shares will be in focus after the lender’s loan growth stood at 4.6% for the March quarter, a 17 quarter low.

Avenue Supermarts will be on focus after the company released its March quarter updates. The company said its March quarter revenue stood at 7,300 crore versus 6,193 crore a year ago. The firm opened 22 new stores this year.

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