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Indian shares are likely to open higher on Tuesday after scaling record highs in the previous session, and in line with Asian peers, as they extended gains on strong data from China.

The Gift Nifty was trading at 22,557.50 as of 8:03 a.m. IST, indicating that the blue-chip NSE Nifty 50 will open above Monday's close of 22,462.

After consolidating for three weeks, both the Nifty 50 and BSE Sensex scaled all-time highs on Monday, helped by a surge in metal companies after upbeat manufacturing data from top consumer China.

Moderation in a key inflation reading in the U.S. also aided sentiment in the previous session.

Monthly business updates as well as the earnings season starting next week, could help sustain momentum in the markets and trigger a rally to further peaks, equity analysts at Motilal Oswal Financial Services and WealthMills Securities said.

Asian markets opened higher, with the MSCI Asia ex-Japan index adding 0.69%.

Wall Street equities closed mixed overnight as optimism over moderating inflation was offset by data signalling strength in U.S. economy that could allow the Federal Reserve to delay the onset of rate cuts. [MKTS/GLOB]

U.S. manufacturing grew for the first time in 1-1/2 years in March, helped by rebound in production and rise in new orders, data showed on Monday, weighing on hopes of a rate cut from June.

Foreign portfolio investors sold 5.22 billion rupees ($62.61 million) of shares on a net basis while domestic institutional investors purchased shares worth 12.08 billion rupees, on Monday, according to provisional data from the National Stock Exchange.

STOCKS TO WATCH:

** Hero MotoCorp: Company recorded total sales of 490,415 units of motorcycles and scooters in March, down from 519,342 units year-on-year.

** Aditya Birla Fashion: Apparel retailer said it was planning to demerge Madura Fashion & Lifestyle, which contributes more than 70% of company's total revenue, into a separate listed entity.

** TVS Motor Company: Company said total sales in March 2024 rose 12% year-on-year.

** Infosys: Company got order from income tax department for Assessment Year 2020-2021 with a tax demand of 3.41 billion rupees.

($1 = 83.3760 Indian rupees)