Indian shares are likely to open relatively unchanged on Tuesday, as consolidation persists near record high levels for the benchmarks, while Asian peers declined ahead of key central bank decisions from Japan and the US
The GIFT Nifty was trading at 22,057 as of 08:03 a.m., indicating the Nifty 50 will open near Monday's close of 22,055.70.
Both the Nifty 50 and BSE Sensex logged about 0.15 per cent gains on Monday, despite the ongoing selling pressure seen in broader markets.
The blue-chip Nifty 50 has closed above the 22,000 levels in 11 of the 12 sessions so far in March, gaining 0.33 per cent. Small- and mid-caps have declined 7.6 per cent and 3.8 per cent, respectively, over the same period, on rising concerns of froth and elevated valuations in the segments.
"Overall, we expect the benchmarks to consolidate in the next few days, while broader markets may continue to remain subdued," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Asian markets slipped ahead of the Bank of Japan's policy decision later in the day, potentially ending the longest streak of negative interest rates.
Wall Street equities closed higher overnight, with treasury yields increasing ahead of the Federal Reserve policy decision and commentary on Wednesday, as investors seek insights on the U.S. central bank's future rate trajectory.
Foreign portfolio investors sold Indian shares worth ₹2,051 crore on a net basis on Monday. Domestic institutional investors bought a net ₹2,261 crore of stocks.
STOCKS TO WATCH
Tata Consultancy Services: Tata Sons, the holding arm of the Tata Group, planned to sell shares in TCS worth up to $1.13 billion on Tuesday, according to a term sheet.
Tata Steel: Company decided to cease operations of coke ovens at the Port Talbot plant, in Wales, following a deterioration of operational stability.
HG Infra Engineering: Company, in a joint venture with Stockwell Solar Services, received four orders worth 10.26 billion rupees for solar business.
Paradeep Phosphates: Company announced shut down of ammonia and urea plants at Goa due to breakdown of synthesis gas compressor.