The optimism that ruling Bharatiya Janata Party (BJP) is set to come to power again in the 2019 Lok Sabha elections will continue to dominate investor sentiment on Tuesday. However, weak global cues such as escalating trade tensions between the US and China and volatile crude oil prices may dent positive sentiment.
Besides, March quarter earnings and the movement of rupee against the US dollar will also play a key role.
On Monday, the S&P BSE Sensex ended the day 1,422 points higher at 39,352 levels while the broader Nifty50 gained 421 points to settle at 11,828. The rupee closed at Rs 69.74 a dollar.
About 97 companies are scheduled to announce their Q4FY19 results today including Tech Mahindra, DLF, Cochin Shipyard, and Jindal Steel and Power.
Asian stocks were trading near four-month low on Tuesday. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade with Japan’s Nikkei trading 0.5 per cent lower.
On Wall Street, the Dow Jones fell 84 points to 25,680 levels while the S&P500 fell 19 points to end at 2,840 levels. The Nasdaq, too, shed 114 points to close at 7,702.
In commodities, oil prices inched up on Tuesday as tensions between the US and Iran escalated. Brent crude futures were at $72.07 per barrel at 6:00 am up 0.1 per cent from their last close.