Sensex, Nifty Seen Tad Lower On Weak Asian Cues

Indian shares are seen opening a tad lower on Monday as investors digest mixed U.S. jobs data and look ahead to the release of upcoming U.S. inflation data this week for cues on the timing and pace of interest-rate cuts.

Benchmark indexes Sensex and Nifty eked out modest gains to reach record highs last week on the back of an increase in FII flow and falling U.S. Treasury yields on hopes for a Fed rate cut by June.

However, small and mid-cap stocks came under selling pressure on valuation concerns.
India’s retail inflation data for February along with industrial output data for the months are scheduled to be released on Tuesday.

The wholesale price index (WPI)-based inflation data will be out later in the week.
Asian markets were broadly lower this morning, with Japan’s Nikkei falling over 2 percent as the yen extended recent gains against the dollar.

Japan’s Q4 GDP was revised up to show slightly expansion, fueling bets the Bank of Japan will end negative interest rates soon.

Elsewhere, China’s consumer prices rose for the first time in six months in February, while producer prices continued to fall in the month, data revealed.

The dollar traded weak in Asian trading and gold held steady near a record high while oil prices declined ahead of reports from OPEC and the IEA this week that may provide clues on the demand outlook.

U.S. stocks closed lower on Friday as February jobs data offered conflicting signals on the economic and rate outlook.

The report showed stronger-than-expected jobs creation, un uptick in the unemployment rate to 3.9 percent, cooler wage growth and notable downward revisions to job growth in the previous two months.

Non-farm payroll employment surged by 275,000 jobs in February, while economists had expected an increase of 200,000 jobs. The numbers for December and January were revised downward by a total of 167,000.

The tech-heavy Nasdaq Composite lost 1.2 percent, the S&P 500 gave up 0.7 percent and the Dow eased 0.2 percent.

European stocks ended mixed on Friday as data showed Eurozone GDP was little changed at the end of 2023.

The pan European STOXX 600 ended flat with a positive bias. The German DAX slipped 0.2 percent and the U.K.’s FTSE 100 shed 0.4 percent while France’s CAC 40 edged up 0.2 percent.

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