Sensex, Nifty Set To Rise As Oil Prices Tumble On Demand Concerns

(RTTNews) - Indian shares are likely to open higher as investors react to firm global cues, tumbling oil prices and encouraging April industrial output and May consumer inflation data released after market hours on Monday.

Global cues remain positive on expectations that the Federal Reserve will hold pat on interest rates this week.

Oil prices were slightly higher in Asian trade, after having fallen over 4 percent in the U.S. trading session overnight on fuel demand concerns.

India's retail inflation eased to a more than two-year low of 4.25 percent in May while industrial output rebounded from a five-month low to grew 4.2 percent in April, separate reports showed.

Benchmark indexes Sensex and Nifty eked out modest gains on Monday to snap a two-day losing run, while the rupee moved in a tight range before closing 3 paise higher at 82.43 against the dollar.

Asian stocks traded mixed this morning, with Chinese and Hong Kong markets declining as investors braced for a raft of Chinese data for May to be released later this week. The U.S. dollar traded in a narrow range while gold was marginally lower.

U.S. stocks advanced overnight as investors braced for CPI data and the Federal Reserve policy decision.

The tech-heavy Nasdaq Composite and the S&P 500 gained 1.5 percent and 0.9 percent respectively to reach their best closing levels in over a year while the Dow rose 0.6 percent.

European stocks also closed higher on Monday ahead of a busy week of central bank meetings.

The pan European STOXX 600 edged up 0.2 percent. The German DAX climbed 0.9 percent, France's CAC 40 added half a percent and the U.K.'s FTSE 100 inched up 0.1 percent.