FX.co ★ Sensex, Nifty Set To Follow Asian Peers Lower

Indian equity markets are poised to open slightly lower on Tuesday as investors digest weak Asian market signals and data indicating a reduction in India's trade deficit for June, supported by a partial recovery in global demand and a decrease in import expenses.

On Monday, the benchmark indices, Sensex and Nifty, posted modest gains to close at record highs, although the Indian rupee depreciated by 11 paise, hitting an all-time low of 83.62 against the U.S. dollar.

According to provisional data from the NSE, foreign institutional investors (FIIs) net purchased shares worth ₹2,684.78 crore on Monday, while domestic institutional investors (DIIs) net sold shares valued at ₹331 crore.

Asian markets exhibited a subdued performance this morning as investors evaluated the potential for more expansive fiscal policies under Donald Trump following Saturday's incident.

The U.S. dollar gained marginally in Asian trading, and gold prices hovered near a one-month high amid rising expectations of a Federal Reserve rate cut in September, while oil prices continued their decline due to demand concerns.

U.S. stocks closed on a strong note overnight, with two of the three major indices reaching new record highs. This was driven by optimism around potential interest rate cuts by the Federal Reserve and increasing prospects of former President Donald Trump winning the forthcoming presidential elections.

The Dow Jones Industrial Average gained 0.5 percent, the S&P 500 increased by 0.3 percent, and the tech-centric Nasdaq Composite rose by 0.4 percent, despite data showing a continued decline in manufacturing activity in New York state.

In Europe, stocks closed lower on Monday, pressured by disappointing economic data from China and lackluster corporate earnings reports.

The pan-European STOXX 600 fell by 1 percent. Germany's DAX dropped 0.8 percent, France's CAC 40 declined by 1.2 percent, and the U.K.'s FTSE 100 decreased by 0.9 percent.