Sensex, Nifty Seen Higher At Open

Indian shares may open on a positive note Monday, tracking firm cues from global markets on optimism over a soft landing for the U.S. economy.

The rebound from last week’s low levels, if any, may not be sustained due to lingering Middle East headwinds, continued FII outflows, and caution ahead of an upcoming RBI monetary policy meeting, the release of September-quarter corporate earnings and the outcome of state elections in Haryana and Jammu and Kashmir on October 8.

Benchmark indexes Sensex and Nifty both fell over 4 percent last week, marking their worst fall since the week ended June 13, 2022, amid heightened tensions in the Middle East and the announcement of new regulatory curbs on derivatives trading.

Foreign portfolio investors offloaded stocks worth Rs 9,896.95 crore on Friday to extend their selling streak for the fifth straight day running, NSE data showed.

Asian stocks were broadly higher this morning, with Japanese markets leading regional gains.

The dollar gained and Treasury yields rose as investors recalibrate their bets on the size of the Federal Reserve’s next interest-rate cut.

Oil drifted lower in Asian trading after gaining around 9 percent last week. Gold was subdued ahead of U.S. consumer price inflation and producer price inflation data as well as the minutes of Federal Open Market Committee from the September policy meeting due this week.

U.S. stocks rallied on Friday as upbeat jobs data raised optimism about the economy but dashed hopes of aggressive rate cuts in the coming months.

Data showed that non-farm payroll employment jumped by 254,000 jobs in September after climbing by an upwardly revised 159,000 jobs in August. The jobless rate edged down to 4.1 percent from 4.2 percent in August.

The Dow gained 0.8 percent to settle at a fresh record high, while the S&P 500 added 0.9 percent and the tech-heavy Nasdaq Composite climbed 1.2 percent.

European stocks ended higher on Friday as the jump in U.S. hiring helped ease fears of a downturn.

The pan European STOXX 600 rose 0.4 percent. The German DAX advanced 0.6 percent and France’s CAC 40 surged 0.9 percent while the U.K.’s FTSE 100 finished marginally lower.

Market Analysis