Indian shares are seen opening higher on Tuesday, although underlying sentiment may remain cautious as investors grapple with worsening strains between Washington and Beijing as well as rising coronavirus cases both at home and abroad.
Over 68 percent of rural Indians were in a monetary crisis while 78 percent found work coming to a complete standstill due to the lockdown, a survey of 25,300 respondents from 23 states and union territories on the impact of the stringent lockdown in rural India found.
Benchmark indexes Sensex and the Nifty eked out modest gains on Monday while the rupee settled 3 paise higher at 74.90 against the U.S. dollar.
Asian markets rose this morning, the dollar held near a one-week high and oil extended gains to hover around $42 a barrel as New York, California and Texas reported a drop in coronavirus hospitalizations and investors assessed the progress in U.S. stimulus talks between Democrats and Republicans.
U.S. stocks ended mixed overnight as President Donald Trump signed executive orders aimed at extending coronavirus relief to Americans and Beijing announced it would sanction 11 U.S. citizens in response to similar measures from Washington.
The Dow Jones Industrial Average rallied 1.3 percent and the S&P 500 edged up 0.3 percent to reach their best closing levels in over five months, while the tech-heavy Nasdaq Composite index shed 0.4 percent.
European markets closed higher on Monday as investors reacted positively to last week's encouraging data on U.S. jobs growth and signs of improvement in China's industrial activity.
The pan European Stoxx 600 gained 0.3 percent. The German DAX inched up 0.1 percent, France's CAC 40 index edged up 0.4 percent and the U.K.'s FTSE 100 added 0.3 percent.
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