Indian Shares Seen Tad Lower At Open

Indian shares look set to open on a cautious note Monday even as tame U.S. inflation data underpinned hopes for interest rate cuts.

Oil price movements, foreign fund flows, the release of the U.S. Federal Reserve meeting minutes and RBI MPC meeting minutes will be in focus as the week progresses.

Meanwhile, diplomatic discussions between India and the United States over crude oil purchases from Russia have taken an interesting turn.

U.S. Secretary of State Marco Rubio’s stated that India had agreed to halt additional crude oil purchases from Russia.

India’s External Affairs Minister S. Jaishankar maintained that India remains committed to its “strategic autonomy” and that national interests are paramount.

Asian markets were mostly lower in thin trade this morning, with China, South Korea and Taiwan closed for Lunar New Year holidays. The U.S. markets will also remain shut today for Presidents’ Day.

Gold ticked lower in Asian trade while the dollar and oil prices were little changed as traders monitored the latest geopolitical developments and reacted to reports suggesting that OPEC is leaning towards a resumption in oil output increases from April.

Iran and the United States will hold a second round of talks over Tehran’s nuclear program this week, with Israeli Prime Minister Benjamin Netanyahu urging U.S. President Donald Trump to demand Iran dismantle its nuclear infrastructure.

U.S. stocks ended narrowly mixed on Friday while Treasury yields fell as softer-than-expected inflation data boosted bets that the Federal Reserve will deliver at least two interest rate cuts this year.

Data showed consumer prices rose by 2.4 percent on a yearly basis in January, down from 2.7 percent in December and slightly below the estimated 2.5 percent increase.

The annual core price inflation also dipped to 2.5 percent from 2.6 percent, bringing relief to investors heading into the long holiday weekend.

European stocks ended mixed on Friday amid fears that AI will disrupt multiple industries.

The pan-European STOXX 600 index ended 0.1 percent lower. The German DAX edged up by 0.3 percent and the U.K.’s FTSE 100 added 0.4 percent while France’s CAC 40 dipped 0.4 percent.

Market Analysis