Sensex, Nifty To Drift Lower At Open

(RTTNews) - Indian shares may open a tad lower on Monday as investors react to the Karnataka election outcome and await trade and wholesale inflation data due to be released later in the day for directional cues.

India's retail inflation eased more-than-expected in April to its lowest level in one-and-a-half years while industrial production expanded at a slower pace in March, separate reports showed on Friday.

The consumer price index climbed 4.70 percent year-over-year in April - slower than the 5.66 percent rise in March and returning within the RBI's tolerance band of 2-6 percent for the second straight month.

Industrial output expanded 1.1 percent year-over-year in March, much slower than the 5.6 percent gain in February. Economists had forecast 3.3 percent growth.

On the earnings front, Bank of Baroda, Bharti Airtel, Indian Oil, NTPC, Power Grid, Bharat Electronics, Jindal Steel and Power, ITC, and State Bank of India are among the prominent companies that will unveil their quarterly earnings results this week.

Asian stocks traded mostly lower this morning as investors eye China data and speeches by Fed officials.

Earlier today, China's central bank rolled over maturing medium-term policy loans while keeping interest rates unchanged.

Gold edged higher and the dollar held steady while oil prices fell on demand worries. U.S. stocks fell on Friday as debt ceiling worries deepened, a measure of consumer sentiment hit a six-month low and long-term inflation expectations unexpectedly accelerated in early May to a 12-year high, adding to recession worries.

The tech-heavy Nasdaq Composite shed 0.4 percent and the S&P 500 eased 0.2 percent to notch its second straight losing week while the Dow finished marginally lower to extend losses for the fifth consecutive session.

European stocks ended Friday's session higher amid optimism the Federal Reserve would halt interest-rate increases in the next policy review in June.

The pan European STOXX 600 gained 0.4 percent. The German DAX and France's CAC 40 both rose about half a percent while the U.K.'s FTSE 100 edged up 0.3 percent.