Sensex, Nifty Set To Drift Lower On Weak Global Cues

(RTTNews) - Indian shares look set to open lower on Monday as investors react to rising oil prices and weak global cues.

Telecom stocks could be in focus after Bharti Airtel launched 5G services in the country.

Oil and energy stocks may also see increased activity after the government cut the windfall tax on domestically produced crude oil and halved the levy on export of diesel, effective Sunday.

Manufacturing and service PMI readings and auto sales data for September may sway sentiment as the week progresses.

India's fiscal deficit for April-August FY23 stood at Rs 5.4 trillion, or 32.6 percent of the full-year target of Rs 16.6 trillion, official data showed on Friday.

It's going to be a truncated week as markets will remain shut on Wednesday on account of Dassehra.

Asian markets fell in thin trade this morning, with mainland China and South Korean markets closed for holidays.

Gold edged higher as the dollar eased ahead of key U.S. jobs data due this week.

Oil prices jumped around 3 percent in Asian trade amid reports that OPEC+ may consider cutting output by more than 1 million barrels a day for its biggest reduction since the pandemic.

U.S. stocks fell in choppy trading on Friday to notch their longest streak of quarterly losses since the market collapse of 2008, as sportswear maker Nike warned of a margin squeeze and new data closely watched by the Federal Reserve showed that prices continued to rise at a rapid pace in August.

In remarks prepared for a speech in New York, Fed Vice Chair Lael Brainard warned that the risk of additional inflationary shocks cannot be ruled out and that monetary policy will need to be restrictive for some time.

The Dow lost 1.7 percent while the S&P 500 and the tech-heavy Nasdaq Composite both shed around 1.5 percent.

European stocks closed higher on Friday as government bond yields eased and revised data showed Britain is not yet in recession.

The pan European Stoxx 600 rallied 1.3 percent but posted sharp losses for the month and the third quarter.

The German DAX climbed 1.2 percent and France's CAC 40 index surged 1.5 percent while the U.K.'s FTSE 100 edged up 0.2 percent.