Sensex, Nifty Likely To See Modest Gains At Open Ahead Of Trump Inauguration

(RTTNews) - Indian shares may see cautious gains at open on Monday as investors prepare for the first days of the Trump's second term.

U.S. President-elect Donald Trump is due to be sworn in for the second time later in the day, with analysts expecting him to sign a number of executive orders on immigration and other issues shortly after being sworn in.

Markets expect a lot of policy changes, and the proposed tariffs could have a devastating impact on countries like China, Canada and Mexico.

FII flows, oil price movements, budget expectations and Q3 earnings may sway sentiment as the week progresses.

Hindustan Unilever, HDFC Bank, ICICI Bank, BPCL, and Hindustan Petroleum are among the prominent companies due to unveil their quarterly results this week.

Benchmark indexes Sensex and Nifty ended down around half a percent each on Friday, snapping a three-day winning streak.

Asian markets were broadly higher this morning following a positive conversation between Trump and Chinese President Xi Jinping on issues including TikTok, trade and Taiwan in a phone call on Friday.

Overall gains, however, were modest as China's central bank left its benchmark lending rates unchanged due to pressure on the yuan.

The dollar held steady near a two-year high in Asian trade and gold traded below $2,700 per ounce amid signs of easing Middle East tensions while oil edged up slightly on persisting concerns over Russian sanctions.

U.S. stocks rose sharply on Friday and posted weekly gains for the first time in three weeks amid optimism over the health of the economy and path of interest rates.

In economic news, industrial production increased by much more than expected in December while U.S. single-family homebuilding rose to a 10-month high, separate reports showed.

The tech-heavy Nasdaq Composite surged 1.5 percent, while the S&P 500 rallied 1 percent and the Dow added 0.8 percent to notch their biggest weekly gains since the week of the November presidential election.

European stocks closed higher on Friday amid optimism over interest rate cuts following dovish comments from Federal Reserve Governor Christopher Waller and ECB Governing Council member Yannis Stournaras.

The pan-European STOXX 600 index rose by 0.7 percent and logged its fourth consecutive weekly rise.

The U.K.'s FTSE 100 jumped 1.4 percent to hit a record closing high while the German DAX and France's CAC 40 surged 1.2 percent and 1 percent, respectively.

U.S. stock markets will be closed today to commemorate Martin Luther King Jr. Day.