Stock market news: Benchmark indices NSE Nifty 50 and S&P BSE Sensex are set to open higher on Tuesday, buoyed by gains in broader Asian markets, as investors await both domestic and US inflation data for further cues.

The GIFT Nifty was trading at 22,455 as of 08:17 am, indicating a positive start for the Nifty 50 above Monday's close of 22,332.65.

Asian markets kicked off the day in the green, with the MSCI Asia ex-Japan index up by 0.23 per cent. However, most Wall Street equities experienced declines overnight amid anticipation of US consumer price index (CPI) inflation data, scheduled for release after the closing bell.

Market analysts expect the CPI to have risen by 0.4 per cent in February on a monthly basis, a figure that could significantly impact the timing of the Federal Reserve's interest rate decisions.

While a rate cut is unlikely during the Fed's upcoming policy meeting on March 20, traders are eyeing a 55.2 per cent probability of 25 basis points cut in June, according to CME's FedWatch Tool.

Investor focus also rests on India's CPI data, projected to have dipped to a four-month low in February due to easing food prices, according to a Reuters poll of economists. This data is slated for release after market hours.

On Monday, both the Nifty 50 and BSE Sensex each recorded a 0.7 per cent decline, primarily driven by losses in banking and Tata Group stocks, as well as profit booking near record high levels.

Small-cap stocks lagged behind blue chips, falling by 2 per cent, with the markets regulator signaling concerns about overheating in the small- and mid-cap segments.

In terms of trading activity, both foreign portfolio investors and domestic institutional investors were net buyers of Indian equities on Monday, accumulating shares worth Rs 4,213 crore and Rs 3,238 crore, respectively.

Stocks to Watch

• ITC: British American Tobacco announced it is exploring the possibility of divesting a small portion of its shareholding in ITC.
• Aditya Birla Capital: The company revealed plans for a merger with its unit Aditya Birla Finance, transitioning from a holding company to an operating non-banking financial company.
• Interglobe Aviation: Co-founder Rakesh Gangwal divested a 5.8 per cent stake valued at $820.3 million in the company through bulk deals.
• Jupiter Wagons: The company secured a contract worth Rs 957 crore from the Ministry of Railways for the manufacturing and supply of BOSM Wagons.