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Indian shares will likely open higher on Tuesday, as investors broaden their positions, with a focus on Adani group stocks after U.S. short-seller Hindenburg said it received a show-cause notice from India's markets regulator.

Hindenburg Research said that it received a letter from the markets regulator outlining suspected violations over its short bet against the group.

The GIFT Nifty was trading at 24,249 as of 08:25 a.m. IST, indicating the Nifty 50 will open above Monday's record close of 24,141.95.

Indian benchmarks have been trading at record levels, helped by a post election rally and return of foreign inflows in June.

The sustained uptrend is driven by sectoral rotation, broader participation, and a notable absence of challenges and pessimism on a global scale, said Osho Krishan, an analyst with Angel One.

Investors have been adding their exposure to finance and information technology stocks, which have been laggards this year, compared with sectors such as metals and realty, analysts said.

Domestic investors bought Indian shares worth 39.17 billion rupees ($469.3 million) on a net basis on Monday, while foreign investors net sold stocks worth 4.26 billion, per exchange data.

Asian peers were flat. Overnight, Wall Street equities logged gains, in-line with European peers, after the first round of voting in the elections in France indicated a smaller-than-expected lead for the far right. [MKTS/GLOB]

On the domestic front, shares of state-owned oil marketing firms will be in focus after India hiked windfall tax on petroleum crude. Costlier crude is a negative for refiners as it is their key raw material.

Automakers like Tata Motors, Hero MotoCorp and TVS Motor will also be in focus after the June monthly auto sales data that came post-close on Monday.

Tata Motors' total domestic sales for June fell 8% while Hero's volumes in the month swelled 15%.

STOCKS TO WATCH ** Asset Management companies: Markets regulator asks stock exchanges and other market infrastructure institutions to charge all members uniformly and not offer discounts based on trading volumes or activity. ** NMDC: Company posts 3.2% year-on-year drop in production volume and 9% fall in sales volume in June. ** South Indian Bank: Gross advances up 11.4% while deposits rise 8.41% year-on-year in June quarter. ** DCX Systems: Company secures order worth 12.5 billion rupees from Larsen & Toubro for manufacture and supply of electronic modules for three years.

($1 = 83.4690 Indian rupees)