Indian equities are expected to extend gains on Tuesday as global markets are supportive. Asian stocks made modest gains on Tuesday after the US shelved plans for tariffs against Mexico, lifting Wall Street. However, fresh US trade threats against China are expected to limit any major investor sentiment boost.
The MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2%. Australian stocks rose 0.9%, South Korea’s KOSPI added 0.15% and Japan’s Nikkei edged up 0.05%.
US stocks extended their recent climb on Monday, with the Dow rising for the sixth trading day following a decision by the US to forgo imposing tariffs on Mexican goods.
US President Donald Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit. The US president has repeatedly said he expected to meet Xi at the June 28-29 summit in Osaka, Japan, although China is yet to confirm any such meeting.
Back home, Essel group stocks are likely to be in focus today. The debt-ridden Essel group is looking to sell a minority stake in broadcaster Zee Entertainment Enterprises Ltd (ZEEL) to a financial investor by the end of July to meet immediate payment obligations, said two people directly aware of the matter.
The Subhash Chandra-led Essel group has been in talks with potential buyers, mainly strategic investors, to sell the promoters’ stake in ZEEL since November. The sale of a minority stake in ZEEL to a financial investor will take care of the immediate debt owed to mutual funds and banks.
Meanwhile, according to the Association of Mutual Funds in India (Amfi), net inflows into equity mutual funds in May were ₹4,968.43 crore, down 56.22% from ₹11,350 crore a year ago. In a small relief, May inflows were 17.4% higher from April, a month when inflows had plunged 64% to the lowest in 31 months on election uncertainty, rating downgrades and a rise in crude oil prices.
In the currency markets, the dollar gave up some of the modest gains it made against its peers overnight on news that the US and Mexico agreed on a deal to avoid tariffs.
(Reuters contributed to the story)