Indian benchmark indices Sensex and Nifty may open moderately higher on Monday, with GIFT Nifty signalling slim gains after Friday's sharp rally. Gains on Wall Street and a decline in crude oil prices could support sentiment, although subdued Asian markets, persistent foreign institutional selling and geopolitical uncertainty may limit the upside. Investors will also track the upcoming US earnings season and inflation data for fresh global cues.
GIFT Nifty was trading at 22,625 around 8 am, up 22.5 points, or 0.1 percent. Indian equities ended sharply higher on Friday, with the Sensex jumping 879 points, or 1.23 percent, to 72,472 and the Nifty gaining 289 points, or 1.30 percent, to 22,520. Foreign institutional investors extended their selling streak to an 11th consecutive session, offloading equities worth Rs 3,568 crore, while domestic institutions bought shares worth around Rs 4,743 crore.
Asian equities began the week on a cautious note as investors assessed elevated technology valuations ahead of the quarterly earnings season, while geopolitical uncertainty and volatility in crude oil prices kept risk appetite in check.
South Korea's Kospi fell 1.1 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan was little changed. Japanese markets were closed for a holiday. US equity futures were firmer, with S&P 500 futures rising 0.2 percent and Nasdaq futures gaining 0.5 percent. Trading volumes were thin, with US markets observing a partial holiday.
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