Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 45 points at the opening bell.

Overseas, Asian stocks are trading higher on Tuesday, after strong manufacturing data and gains in tech stocks boosted global equities.

In US, Nasdaq surged to a record high close on Monday as a rebound in multibillion-dollar deals, including Microsoft's pursuit of TikTok's U.S. operations, lifted sentiment, and efforts to hammer out a coronavirus relief bill resumed.

U.S. stocks received an additional lift from Microsoft, which jumped 5.6% after it formally declared interest in TikTok's U.S. operations on Sunday. President Donald Trump reversed course earlier on a planned ban of the short-video app. Apple Inc climbed 2.5%, expanding its rally following stunning quarterly results and announcing a four-for-one stock split.

After wrapping up talks on Monday over another round of coronavirus economic stimulus, U.S. House Speaker Nancy Pelosi said she will meet with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows the following day to continue the discussion.

The U.S. economy, battered by a resurgence in the spread of COVID-19, needs increased government spending to tide over households and businesses and broader use of masks to better control the virus, U.S. central bankers said on Monday.

U.S. manufacturing activity accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-19 infections, which is raising fears about the sustainability of a budding economic recovery.

The ISM said its index of national factory activity raced to a reading of 54.2 last month from 52.6 in June. That was the strongest since March 2019 and marked two straight months of expansion.

Meanwhile, U.S. President Donald Trump reportedly said after the market close that a “permanent lockdown” policy is not a “viable path forward” to combating the coronavirus pandemic.

Back home, key domestic benchmarks ended with steep losses on Monday, extending their losing streak to fourth consecutive trading session. Weak domestic economic data weighed on the sentiment. A surge in fresh coronavirus cases and intensifying US-China tensions also put pressure on stocks. The barometer index, the S&P BSE Sensex slumped 667.29 points or 1.77% at 36,939.60. The Nifty 50 index lost 173.60 points or 1.57% at 10,899.85. The Nifty declined 3.55% in four sessions.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,818.49 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 135.55 crore in the Indian equity market on 3 August, provisional data showed.