MUMBAI: Markets are expected to stay in consolidation mode on Tuesday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Monday, the BSE Sensex ended at 60,077.88, up 29.41 points. The Nifty closed at 17,855.10, up 1.90 points.

Asian shares mainly drifted lower on Tuesday as investors continued to fret over China Evergrande Group’s unsolved debt crisis and eyed the potential impact of a widening power shortage in China.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.13% lower on Tuesday, following a mixed session on Wall Street.

The future of Evergrande, the world’s most indebted property developer, is being forensically scrutinized by investors after the company last Friday did not meet a deadline to make an interest payment to offshore bond holders. Evergrande has 30 days to make the payment before it falls into default and Shenzen authorities are now investigating the company’s wealth management unit.

Without making reference to Evergrande, the People’s Bank of China (PBOC) said Monday in a statement posted to its website that it would “safeguard the legitimate rights of housing consumers."

Widening power shortages in China, meanwhile, halted production at a number of factories.

Buoyed by robust tax collections, the government on Monday effectively cut its gross borrowing target for the fiscal year by announcing that it will absorb Rs1.59 trillion of additional borrowing for tax compensation to states within its annual target. This, in effect, reduces the annual gross borrowing target to Rs10.46 trillion for the year to 31 March from the budgeted Rs12.05 trillion.

Reliance Industries is in talks to buy a stake in Indian mobile content provider Glance InMobi Pte, according to a news report. The conglomerate is considering investing about $300 million in the unicorn backed by Alphabet Inc.’s Google.

Maruti Suzuki has told its component suppliers to be ready for the production of 160,000-180,000 cars and SUVs in October, as the nation's largest passenger vehicle maker is making arrangements to secure supply of chipsets through multiple channels, according to a news report.

After InGovern Research, another proxy advisory firm, Stakeholders Empowerment Services (SES), has advised shareholders of Finolex Cables Ltd to vote against the appointment of certain directors at the company’s 29 September annual meeting.

Rising bond yields prompted a shift from growth to cyclical stocks in the United States, in a move that analysts expect could become more permanent after a prolonged period of supressed bond yields.

U.S. Treasury yields soared to a three-month high, touching 1.516% overnight following the Federal Reserve’s move last week to indicate fiscal stimulus could be tapered as early as November.

In Asian trade, the dollar was up nearly 0.1% in line with its performance in the international session Monday after it rose alongside bond yields.

Gold was flat, while Brent crude oil was down 0.2%.