Sensex, Nifty Set To Follow Global Peers Higher

(RTTNews) - Indian shares look set to open higher on Monday as in-line U.S. inflation data helped increase confidence the Federal Reserve will continue lowering interest rates in the coming months to bolster a cooling labor market.

RBI's upcoming interest-rate decision and global developments, especially any new developments around the India-U.S. trade talks may influence trading sentiment as the week progresses.

Speaking about ongoing trade challenges, the United States will have to "fix" a bunch of countries, including India and Brazil and they needed to "react correctly" to the U.S. by opening their markets and avoiding policies that harm American interests, Commerce Secretary Howard Lutnick has said.

Indian stock markets will remain closed for a holiday on October 2, 2025, because of the twin celebrations of Mahatma Gandhi Jayanti and Dussehra.

Asian stocks were mixed this morning, with mainland China and Japanese markets retreating.

The U.S. dollar was on the defensive while gold edged up to hover above $3,790 per ounce as traders braced for a potential U.S. government shutdown that could stall the release of September's payrolls and other key economic data.

Top U.S. congressional leaders plan to meet with President Donald Trump today to negotiation government funding.

Without an agreement, a shutdown will begin Wednesday, coinciding with new tariffs on heavy trucks, pharmaceuticals and other goods.

Oil prices traded lower in Asian trading as crude resumed flowing from Iraq's Kurdistan to Turkey for the first time in 21/2 years and Reuters reported OPEC+ will likely approve another production increase of at least 137,000 barrels a day in November at its meeting next weekend.

U.S. stocks rebounded on Friday after falling for three straight sessions.

The Treasury yield curve marginally steepened as August's personal consumption expenditures price index, the Federal Reserve's preferred inflation measure, showed that core inflation rose at a 2.9 percent seasonally adjusted annual rate in August, unchanged from July and matching estimates.

The Dow climbed 0.7 percent, the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite added 0.4 percent.

European stocks recovered from three-week lows on Friday despite U.S. President Donald Trump announcing new import tariffs on pharmaceutical drugs, kitchen cabinets and bathroom vanities, upholstered furniture and heavy trucks.

The pan European Stoxx 600 gained 0.8 percent. The German DAX rose 0.9 percent, France's CAC 40 rallied 1 percent and the U.K.'s FTSE 100 advanced 0.8 percent.