Sensex, Nifty Poised For Flat Opening

(RTTNews) - Indian shares are likely to open a flat note Monday, mirroring mostly firm cues from global markets as recent weak U.S. data bolstered optimism that the Federal Reserve will refrain from raising interest rates over the next several months before cutting rates in mid-2024.

Benchmark indexes Sensex and Nifty rose around 1 percent each last week to log a third straight week of gains, with sentiment supported by declining oil prices and hopes the Fed may be done hiking rates.

Analysts expect the positive sentiment to continue this week, with movements in bond yields and oil prices likely to sway sentiment as the week progresses.

Adani Group stocks could be in focus today after an application was filed in the Supreme Court seeking contempt proceedings against capital market regulator SEBI in the Adani-Hindenburg matter.

Likewise, banks may see significant activity post-RBI guidelines on sanctioning personal loans.

Asian markets traded mixed this morning in cautious trade. Gold was marginally higher as the dollar remained on the back foot after recording its worst week in four months.

The 10-year U.S. Treasury yield hovered near a two-month low while oil rose further after jumping more than 4 percent on Friday.

In the Middle East, the Israeli ambassador to the U.S. said he is hopeful a deal for the release of a significant number of hostages will be reached "in the coming days."

U.S. stocks finished slightly higher on Friday as bond yields fell further on dovish Fed expectations. In economic news, reports on housing starts and building permits painted a positive picture of the world's largest economy.

The S&P 500 inched up 0.1 percent to clinch a third straight winning week and reach its best closing level in well over two months. The Dow and the tech-heavy Nasdaq Composite both saw marginal gains.

European stocks rose notably on Friday amid growing optimism that global central banks will aggressively cut interest rates next year.

The pan European STOXX 600 rallied 1 percent. The German DAX rose 0.8 percent, France's CAC 40 gained 0.9 percent and the U.K.'s FTSE 100 climbed 1.3 percent.