Indian Shares Likely To Open Flat Or Slightly Lower

(RTTNews) - Lower GIFT Nifty futures, subdued Asian markets and the overnight weak close on Wall Street point to a flat to negative start for Indian shares Tuesday morning. Geopolitical tensions and the rise in oil prices may also weigh on sentiment.

Worries surrounding valuations of AI-related stocks have surfaced again. Trading volumes are may remain somewhat low with big players likely to stay on the sidelines.

On the economic front, data released by the government after trading hours on Monday showed the industrial production in India grew 6.7% from the previous year in November, accelerating from the upwardly revised 0.5% increase in the previous month, to mark the sharpest pace of expansion since October of 2023.

The manufacturing output in India expanded by 8% annually in November, according to a preliminary estimate, following the upwardly revised 2% increase in the previous month.

In corporate news, Lupin has entered into an exclusive License, Supply, and Distribution Agreement with Gan & Lee Pharmaceuticals for a novel fortnightly GLP-1 receptor agonist, Bofanglutide. The injection is used for treating type 2 diabetes and for aiding weight management.

Bharat Electronics has bagged new orders worth Rs 569 crore since the third week of this month.

Reliance Industries has said that a Reuters report saying that the Indian government was seeksing over $30 billion in compensation from RIL and BP in arbitration for gas underproduction, as "factually incorrect."

Arvind Fashions announced that it will acquire Flipkart India's full 31.25% holding in its denim-centric subsidiary that operates the Flying Machine brand, in a transaction worth ?135 crore.

India's benchmark indexes Sensex and the Nifty50 ended weak on Monday, as sustained selling by foreign portfolio investors weighed on stocks. A lack of positive data rendered the mood cautious for yet another day.

The benchmark BSE Sensex settled at 84,695.54, losing 345.91 points or 0.41%, while the National Stock Exchange's Nifty50 ended with a loss of 100.20 points or 0.38% at 25,942.10. The Sensex extended its losing streak to a fourth straight session.

On Wall Street, stocks moved mostly lower during trading on Monday. The major averages all moved to the downside, although selling pressure was somewhat subdued. Traders chose to cash in on recent gains.

The Dow fell 249.04 points or 0.5% to 48,461.93. the Nasdaq slid 118.75 points or 0.5% to 23,474.35 and the S&P 500 declined 24.20 points or 0.4% to 6,905.74.