Indian shares are set to open flat on Monday, after logging their best week since June on Friday, with traders expecting marginal moves ahead of U.S. and domestic inflation data this week.
The Gift Nifty futures were trading at 24,731.5 as of 8:12 a.m. IST, indicating that the benchmark Nifty 50 will open near Friday's close of 24,677.8.
Both indexes gained about 2.3% each last week, their best since early June, as the Reserve Bank of India (RBI) cut the cash reserve ratio (CRR) that banks are required to hold, effectively easing monetary conditions.
While the outlook for domestic equities remains positive, markets may only see incremental moves in the next few sessions ahead of the U.S. and domestic inflation readings this week, two traders said.
U.S. jobs data on Friday was largely along expected lines, prompting investors to ramp up bets of a December rate cut by the Federal Reserve.
Focus is now on U.S. consumer price inflation (CPI) data, which is due on Wednesday and will influence the future rate trajectory and foreign inflows into emerging markets such as India.
India's CPI data, due on Thursday, will be a crucial factor influencing RBI's rate cut timing, analysts said.
Other Asian markets opened lower on the day, dragged down by South Korean shares amid political turmoil. [MKTS/GLOB]
STOCKS TO WATCH
** Paytm says it will sell its 5.4% stake in Japan's digital payments firm PayPay to SoftBank for $250 million.
** Larsen & Toubro gets a favourable order from a tribunal, which set aside 7.02 billion rupees ($83 million) of customs demand.
** Ceat says it will buy Camso brand from France's Michelin for $225 million.
** Star Health receives show cause notice from insurance regulator for non-compliance with various rules and guidelines.
($1 = 84.6810 Indian rupees)