FX.co ★ Sensex, Nifty Seen Tad Higher At Open

Shares in India are projected to open slightly higher Tuesday following a holiday weekend. Despite this, the mixed signals from global markets and concerns about the rising cost of oil may inspire investors to take profits later in the session.

Indian markets were closed Monday in observation of the Holi festival. This week will only consist of three trading sessions, as the markets are also closed on Friday for Good Friday. The shortened week may result in increased volatility due to the upcoming future and options (F&O) expiry and the publication of economic reports on the current account balance, core sector performance, and fiscal deficit. According to recent data from the Reserve Bank of India, India's foreign exchange reserves reached a record high of $642.292 billion by the week ending March 15.

Even though foreign portfolio investors (FPIs) were net sellers last week, withdrawing $314 million, the Sensex and Nifty indices still managed to make modest gains.

Asian markets delivered mixed performances this morning as investors adjusted their positions ahead of the release of crucial inflation data from the US and Europe. In the meantime, gold prices decreased in Asia, while treasury and dollar prices remained stable.

Oil prices continued their upward trend due to escalating geopolitical tensions fueling supply worries. Russia carried out missile strikes on key infrastructure in Ukraine's western Lviv region. Some of these missiles also briefly entered Polish airspace.

The Houthi group has issued a warning to Saudi Arabia. The group stated that Saudi Arabia would become a target should it offer support or aid to the US-UK coalition opposing them.

US stocks oscillated before ultimately falling owing to China introducing new directives that have substantial implications for significant US technology firms, including Intel, AMD, and Microsoft. Further data shows that sales of new single-family homes in the US unexpectedly dropped in February.

The S&P 500 and the Nasdaq Composite both declined around 0.3 percent, while the Dow dropped by 0.4 percent.

European stocks delivered mixed performances on Monday following an active week of central bank meetings in Asia, Europe, and the United States. The pan-European STOXX 600 ended flat but with a positive bias. Germany's DAX rose by 0.3 percent, while France's CAC 40 barely declined and the UK's FTSE 100 dropped by 0.2 percent.