FX.co ★ Sensex, Nifty Seen Higher At Open As Dollar And Yields Ease

Indian stocks are anticipated to see growth in Monday's opening as the release of weak US economic figures on Friday heightened speculation of the Federal Reserve's eventual interest rate cuts. However, this growth may only be moderate as oil continues its upward trajectory after a 2% increment to reach a four-month zenith on Friday. This increase is due to mounting tension in the Middle East and the Red Sea paired with OPEC's prolongation of output cuts.

Boycotting Gaza ceasefire discussions in Cairo, Israel demands a comprehensive list from Hamas detailing all living hostages. Within India, factors potentially affecting market sentiment throughout the week include the PMI data for the services sector, fluctuations in the rupee, and patterns in Foreign Institutional Investors' inflow. Local stock exchanges BSE and NSE will not operate on Friday due to the Mahashivratri holiday.

Internationally, the attention in the coming week will center on the testimony of Jerome Powell, the Fed Chair, and US employment figures. Last week, boosted by robust GDP data, the BSE Sensex rose by 0.9%, while the NSE Nifty experienced a 0.7% growth.

Asian stocks displayed a mixed performance Monday morning, with losses for both the Chinese and Hong Kong markets as China initiated its annual legislative session. Contrarily, Japan's Nikkei 225 index exceeded 40,000 for the first time due to purported governmental considerations to announce the end of deflation.

Additional global trends include the easing of the dollar index, gold potentially setting record highs, and oil stabilizing near its highest level this year. US stocks closed higher on Friday due to Dell's strong Q4 earnings and weakening manufacturing and consumer sentiment figures that led to a three-week low for 2-, 10-, and 30-year Treasury yields.

The Nasdaq Composite and the S&P 500 grew by 1.1% and 0.8%, leading to new record closing highs, while the Dow saw a subtle 0.2% increase.

In European stock news, Friday's trading ended with broad growth after data revealed a second consecutive monthly decline in Eurozone inflation during February. The pan-European STOXX 600 increased by 0.6%, Germany's DAX surged 0.3%, France's CAC 40 saw slight growth, and the UK's FTSE 100 rose by 0.7%.