Indian Shares Likely To Open Lower On Weak Global Cues

(RTTNews) - Lower GIFT Nifty futures, and weak global cues amid uncertainty about the outlook for interest rate cuts by the Federal Reserve following upbeat non-farm payroll data point to a negative start for Indian shares on Monday.

Data showing India's industrial production expanded at the fastest pace in six months in November, will likely aid sentiment and limit downside.

Investors are likely to tread cautiously ahead of India's consumer price inflation data due after trading hours today. The annual inflation rate in India eased to 5.48% in November of 2024 from 6.21% in the previous month, and remaining near the limit for the central bank's limit of 2 percentage points away from 4%. Higher crude oil prices could be a dampener as well.

Data from the Ministry of Statistics and Programme Implementation showed that India's industrial production rose 5.2% year-over-year in November, faster than the 3.7% gain in October. The expected increase was 4%.

Manufacturing output grew 5.8% annually versus a 4.4% rise in October. Similarly, the growth in mining quickened to 1.9% from 0.9%, while electricity production rose 4.4% from last year compared to 2% in October.

The market will be reacting to a slew of quarterly earnings reports. HCL Technologies, Den Networks, Angel One and Delta Corp are among the companies scheduled to announce their quarterly earnings today.

Indian shares ended slightly lower on Friday to extend their losing streak for a third day running due to concerns over a weakening rupee, rising oil prices and continued FII outflows amidst global uncertainties.

TCS' positive outlook triggered some strong buying in IT stocks, helping limit overall losses in the broader market.

The benchmark S&P/BSE Sensex fell 241.30 points, or 0.31%, to 77,378.91, while the broader NSE Nifty index dropped 95 points, or 0.4%, to 23,431.50.

U.S. stocks tumbled on Friday due to heavy selling across the board as buoyant non-farm payroll data raised concerns that the Federal Reserve will likely hold interest rates at current levels or slow down the pace of reductions. Rising bond yields hurt as well.

The major averages all closed sharply lower. The Dow settled with a loss of 696.75 points or 1.63%, at 41,938.45. The S&P 500 closed down 91.21 points or 1.54%, at 5,827.04, while the Nasdaq ended lower by 317.25 points or 1.63%, at 19,161.62.