FX.co ★ Sensex, Nifty Set For Weak Start

Indian equities are poised for a subdued start this Tuesday following a two-day rally. Nonetheless, the sharp decline in oil prices could mitigate the downside.

Oil prices dropped nearly 3% in the U.S. trading session overnight after reports indicated that Israel and Hezbollah might be nearing a cease-fire agreement expected in the coming days.

Despite the Dow Jones Industrial Average achieving gains for a fourth consecutive session and hitting a new record high overnight, Asian markets traded mostly lower this morning. This uptrend in the U.S. was driven by a positive response to President-elect Donald Trump's intention to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary.

Bessent is perceived as a proponent of equity markets and a strong supporter of deficit reduction. Additionally, he has recommended implementing Trump's proposed tariff hikes gradually to minimize inflationary impacts.

European markets, too, ended on a positive note overnight, buoyed by decreasing bond yields and expectations that the European Central Bank will consistently reduce interest rates by 2025.