Sensex, Nifty Seen Higher At Open; Volatility Likely As Dollar And Yields Climb

(RTTNews) - Indian shares are seen opening on a positive note Monday after U.S. stocks notched strong gains Friday on hopes that the aggressive Federal Reserve rate stance might begin to ease.

That said, investors may adopt a cautious approach as the fate of the U.S. House of Representatives remains still uncertain, with Republicans struggling to pull together a slim majority.

The control of the Senate hinges upon the outcome of three states namely Arizona, Nevada, and Georgia.

Closer home, the key data point to watch out for would be CPI data due later in the day, which might show India's retail inflation eased to a five-month low in October from 7.41 percent in September.

Asian markets traded mixed this morning, the dollar strengthened and bond yields resumed their climb, while gold fell from a 2-1/2 month high after Fed Governor Christopher Waller pushed back on dovish rate bets saying that markets got "way out in front" over just one inflation print.

Chinese and Hong Kong stocks were seeing gains and oil extended Friday's rally after financial regulators in China issued a 16-point plan to boost the real estate market. U.S. stocks saw further upside on Friday amid optimism over easing inflation and hopes the Federal Reserve would soon slow its tightening campaign.

The S&P 500 rose 0.9 percent to close out its best week since June and the tech-heavy Nasdaq Composite climbed 1.9 percent to score its biggest weekly gain since March, while the Dow ended flat with a positive bias after steep declines in Merck and UnitedHealth shares.

For the week, the Nasdaq skyrocketed 8.1 percent, the S&P 500 soared 5.9 percent and the Dow jumped 4.2 percent.

European stocks finished broadly higher on Friday as bond yields eased and China loosened some COVID-restrictions.

The pan European STOXX 600 finished marginally higher. The German DAX and France's CAC 40 index both gained around 0.6 percent while the U.K.'s FTSE 100 shed 0.8 percent.