MUMBAI: Indian markets are likely to open higher on Tuesday with trends in SGX Nifty indicating a positive start for benchmark indices. On Monday, the BSE Sensex ended at 36,939.60, down 667.29 points or 1.77% and the Nifty closed at 10,899.85, down 173.60 points or 1.57%.
Asian shares were higher on Tuesday, after strong manufacturing data and gains in tech stocks boosted global equities and the US dollar overnight.
Global equities, the dollar and oil futures kicked off the week with gains as manufacturing data from the US, Europe and China indicated a factory recovery is holding up despite rising cases of covid-19.
In the US, manufacturing activity accelerated to its highest level in nearly 1.5 years in July as orders increased despite a resurgence in new infections, the Institute for Supply Management said.
Technology companies stocks will be in focus today as US President Donald Trump on Monday signed a new executive order on aligning federal contracting and hiring practices with the "interest of American workers". It called for prohibiting American employers from using H-1B workers to displace Americans in outsourcing contracts.
Yes Bank shares will be eyed as rating agency Moody’s on Monday upgraded the private sector lender’s long-term foreign currency issuer rating by one notch from Caa1 to B3, citing the bank’s recent success in raising capital.
Jubilant Generics Ltd stocks are likely to be in focus as the company has launched covid-19 drug remdesivir under the ‘JUBI-R’ brand at ₹4,700 per vial in the Indian market.
Among major companies, Godrej Consumer Products, Gujarat Gas and Varun Beverages will announce their June quarter results today.
Meanwhile, the central board of Reserve Bank of India (RBI) will meet on 14 August to discuss the dividend transfer to the government, according to a Mint report. The government has budgeted ₹60,000 crore as dividends from RBI and state-run banks and financial institutions, according to the Union Budget 2020-21.
Upbeat manufacturing data in the US lifted oil prices more than 1% and drove the U.S. Treasury curve to steepen, an indication of improved investor sentiment.
Spot gold was down 0.19% in early trade, retreating from a record high of $1,984.66 set on Monday amid support from virus fears.
(Reuters contributed to the story)
