Sensex, Nifty Seen Opening Flat Amid Oil Price Surge

(RTTNews) - Indian shares look set to open higher on Monday as investors react to positive global cues and await the RBI's interest-rate decision due later in the holiday-shortened week.

Stock exchanges will remain closed on April 4 for 'Mahavir Jayanti' and on April 7 on account of 'Good Friday'.

The RBI meets over three days, from April 3 to April 6, and economists remain divided over its likely rate action.

Automakers would be in focus after Maruti Suzuki, Hyundai and Tata Motors all reported their highest-ever dispatches to dealers last fiscal.

Energy stocks may also see increased activity after the government extended export curbs on gasoline and diesel.

In economic releases, India's foreign exchange reserves continued to increase for the second consecutive week, while the current account deficit narrowed to 2.2 percent of GDP in the third quarter of the financial year, separate reports showed.

Meanwhile, output of key infrastructure sectors recorded an almost flat growth rate of 6 percent in February as against 5.9 percent in the same month last year.

Asian markets were trading mixed this morning, as a private survey showed China's manufacturing activity stalled in March after expanding in February for the first time in seven months.

The U.S. dollar started the week higher and gold prices slipped while oil prices jumped more than 5 percent after major producers led by Saudi Arabia announced a surprise cut of more than one million barrels per day.

U.S. stocks rallied on Friday after an inflation gauge the Fed follows closely rose slightly less than anticipated in February, helping spur optimism the Federal Reserve will hold off on raising interest rates at its next meeting in early May.

The Dow climbed 1.3 percent and the S&P 500 gained 1.4 percent while the tech-heavy Nasdaq Composite jumped 1.7 percent to reach a six-month closing high and notch its best quarterly gain since 2020.

European stocks also closed on a firm note on Friday as investors reacted to signs of cooling inflation on both sides of the Atlantic.

The pan European STOXX 600 advanced 0.7 percent. The German DAX rose 0.7 percent, France's CAC 40 index added 0.8 percent and the U.K.'s FTSE 100 edged up 0.2 percent.