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

Indian stocks are projected to open stronger on Tuesday, although potential gains may be limited due to the upcoming market holiday on Wednesday for Maharashtra Day. Market participants are also eagerly waiting for the Federal Reserve's policy meeting outcomes and the anticipated release of the latest U.S. Employment Report, which will provide further pointers on the future trajectory of interest rates.

In other news, Indian economic growth may exceed the central bank's projection of 7 percent for the financial year 2024-25, according to the National Council for Applied Economic Research (NCAER). The council's prediction is based on the forecast for an above-average monsoon this year along with the anticipated acceleration of global economic growth and trade volumes.

Monday saw benchmark indexes Sensex and Nifty surging by 1.3 percent and 1 percent, respectively, with private sector banks leading the rally. Concurrently, the Indian rupee weakened by 10 paise settling at 83.48 versus the dollar, owing to month-end dollar demand from importers.

Asian stocks traded predominantly stronger this morning, with Japanese markets leading regional gains. The yen hovered near its lowest level since 1990 against the dollar, while gold dropped slightly. Oil maintained its biggest drop in almost two weeks due to increasing hopes for a possible truce in Gaza.

In the United States, stock markets recorded modest gains, extending last week's positive trend as the Federal Reserve meeting approached. Tesla managed to pave the way for the launch of their self-driving software in China. Both the Dow Jones Industrial Average and the tech-led Nasdaq Composite Index rose around 0.4 percent, while the S&P 500 Index increased by 0.3 percent.

Monday's trading session saw mixed results in European stocks after early gains evaporated. The STOXX Europe 600 Index closed slightly higher. However, Germany's DAX receded 0.2 percent and France's CAC 40 dropped 0.3 percent. Meanwhile, the UK's FTSE 100 concluded the trading day flat, albeit with a positive tilt.