Sensex, Nifty To Open On Cautious Note Amid Weak Asian Cues

(RTTNews) - Indian shares may open on a cautious note Monday, tracking weak cues from other Asian markets.

Continued selling by foreign portfolio investors in recent sessions due to poll jitters and caution ahead of domestic inflation data due this week may also keep investors nervous.

Foreign investors have pulled out a massive Rs. 17,000 crores from Indian equities in the first 10 days of May.

Numbers released by the National Statistical Office on Friday showed that India's industrial output growth rate slowed to 4.9 percent in March as against 5.7 percent in February.

Meanwhile, polling for the fourth phase of the Lok Sabha elections 2024, a crucial stage, began at 7am today and will continue till 6pm across all Lok Sabha constituencies as well as for assembly seats.

Asian markets traded mostly lower this morning as Chinese inflation data proved to be a mixed bag and reports suggested that the Biden administration is preparing to raise tariffs on clean-energy goods from China in the coming days.

On the positive side, Chinese authorities have kicked off plans to sell 1 trillion yuan of long-dated bonds to help fund stimulus spending at home.

The dollar rose against its major rivals, with focus on upcoming U.S. inflation data and Fed Chair Powell's speech.

Gold was little changed while oil edged lower ahead of an OPEC meeting on supply policy, with Iraq giving out mixed messages on its stance.

U.S. stocks ended mixed on Friday as investors awaited comments from Federal officials for more clarity on the monetary policy path following recent data pointing to a cooling U.S. labor market.

In economic releases, a measure of U.S. consumer sentiment dropped to a six-month low in May due to growing anxiety about inflation, unemployment and interest rates, a survey showed.

The survey's reading of one-year inflation expectations rose to 3.5 percent from 3.2 percent in April.

The Dow edged up 0.3 percent to extend gains for the eighth consecutive session, marking its longest daily winning run since December. The S&P 500 added 0.2 percent while the tech-heavy Nasdaq Composite finished marginally lower.

European stocks closed higher for a sixth day running on Friday after official data showed Britain exited a technical recession with stronger-than-expected growth in the first quarter of 2024 ahead of an election expected later this year.

The pan European STOXX 600 climbed 0.8 percent. The German DAX rose half a percent, France's CAC 40 gained 0.4 percent and the U.K.'s FTSE 100 inched up 0.6 percent.