The two-day US Federal Reserve’s monetary policy meeting, which begins today, is likely to be on the investors' radar on Tuesday.
Additionally, trade tensions, fears of a confrontation between Iran and the United States, oil prices, movement of rupee against the US dollar, progress in monsoon and funds inflow will also play a key role.
On Monday, dampened investment sentiment due to weak monsoon and trade tensions between the US and India dragged benchmark indices to one-month closing low. The S&P BSE Sensex ended at 38,960, down 491 points and the broader Nifty50 closed at 11,672, down 151 points.
The rupee depreciated by 11 paise, falling for the third-straight session, to close at 69.91 per US dollar.
Asian peers capped gains on Tuesday, trading cautiously ahead of the Federal Reserve’s interest rate meeting.
MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05 per cent. Australian stocks added 0.1 per cent while Japan’s Nikkei dipped 0.05 per cent.
On Wall Street, indices ended higher during the overnight trade on Monday. The Dow Jones Industrial Average added 23 points to close at 26,112 while the S&P500 gained 3 points to settle at 2,890. The Nasdaq too rallied 48 points to end at 7,845.
In the commodities market, oil prices gained 0.08 per cent during the early morning trade on Tuesday after dipping 1.7 per cent on Monday on fanning global demand. At 7 am, the Brent Crude futures were trading at $60.99 per barrel.