FX.co ★ Sensex, Nifty Likely To Follow Global Peers Higher

Indian shares are poised to open higher on Tuesday, bolstered by positive global trends and reports indicating that the government may introduce income tax rate cuts in the upcoming Budget. This potential fiscal policy aims to enhance consumption and increase middle-class savings.

The Indian stock markets were closed on Monday in observance of Bakri Id.

With no significant domestic catalysts, market sentiment this shortened week will likely be influenced by global cues, foreign investor activity, oil price fluctuations, and updates from the India Meteorological Department (IMD) regarding the monsoon.

Last week, the 30-share BSE Sensex gained 299.41 points or 0.39 percent, while the broader NSE Nifty index climbed 175.45 points or 0.75 percent.

Asian markets tracked Wall Street's gains this morning, with Treasuries stabilizing after Monday's decline. The U.S. dollar weakened, contributing to a rise in gold prices.

Oil prices remained relatively steady after increasing in the previous session due to escalating Middle East tensions and optimism about growing oil demand in the latter half of this year.

U.S. stocks closed higher overnight as investors anticipated a series of economic data and remarks from Federal Reserve officials later this week. Treasury yields surged following data indicating that manufacturing activity in the New York region contracted at a slower pace in June, with a notably optimistic six-month outlook for business activity reaching a multi-year high.

The tech-centric Nasdaq Composite and the S&P 500 both reached new record closing highs, gaining 1 percent and 0.8 percent, respectively, driven by continued momentum in major tech stocks. The Dow Jones Industrial Average edged up 0.5 percent.

European stocks concluded mostly higher on Monday following their most challenging week since October, amid political instability in France. The pan-European STOXX 600 finished flat but with a slight upward bias. Germany's DAX increased by 0.4 percent, France's CAC 40 added 0.9 percent, while the U.K.'s FTSE 100 ended marginally lower.