IGI Logo

Indian shares are set to open higher on Tuesday on falling U.S. Treasury yields, spurred by renewed hopes for an end to the rate hike cycle and as oil prices hovered around $80 per barrel ahead of the OPEC+ meeting.

India's GIFT Nifty was up 0.02% at 19,877.50 as of 7:58 a.m. IST, but above the benchmark Nifty 50's close of 19,794.70 on Friday.

The Nifty 50 extended gains for the fourth straight week on Friday, after a spate of economic data in the U.S. and commentary by the Federal Reserve raised bets for an end to the rate hike cycle.

Domestic macroeconomic data as well as sustained domestic investor inflows also aided the rise in Indian equities.

The Nifty 50 has closed above 19,600 in every session, but has not breached the 19,900 levels since soft U.S. inflation data on Nov. 14.

Wall Street equities closed lower on Monday as investors digested weak U.S. housing data, which signalled a slowing economy.

U.S. Treasury yields fell, while the dollar slid against most major currencies on expectations that the Fed is done cutting interest rates. Asian markets opened higher. [MKTS/GLOB]

A fall in U.S. Treasury yields could trigger foreign inflows into Indian equities, according to analysts.

Foreign institutional investors bought Indian shares worth 26.25 billion rupees ($314.88 million) on Friday on a net basis. Domestic institutional investors purchased shares worth 1.34 billion rupees.

Oil prices dropped below $80 per barrel on Monday ahead of a key meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia on Nov. 30.

The meeting is expected to bring consensus on oil production cuts. Brent crude futures hovered around $80 per barrel on Asia hours. A fall in oil prices is positive for importers of the commodity like India. [O/R]

STOCKS TO WATCH:

** One 97 Communications: Warren Buffet's investment arm, BH International Holdings exits Paytm parent through open market transactions in a $165 million deal.

** Eicher Motors: Company launches New Himalayan at a starting price of 269,000 rupees in India, 5,750 British pounds in United Kingdom and 5,900 Euroes across Europe.

** Maruti Suzuki India: Auto maker plans to increase prices of cars in Jan. 2024 due to cost pressure.

** JK Cement: Cement maker's unit JK Cement Works, Ujjain, commences cement grinding unit capacity of 1.5 million tonne per annum at its new manufacturing facility.