FX.co ★ Sensex, Nifty Seen Higher At Open

Indian equities appear poised for a modestly positive opening on Monday, driven by encouraging global signals and the resurgence of foreign capital inflows.

The previous week saw benchmark indices, Sensex and Nifty, continue their upward trajectory for the sixth week in a row, achieving new record highs, buoyed by strong earnings from Tata Consultancy Services.

The upcoming quarterly earnings reports are likely to shape market sentiment. Prominent companies including IT giants Infosys and Wipro, as well as heavyweights such as Reliance Industries, Asian Paints, and UltraTech Cement, are scheduled to release their financial results in the shortened trading week ahead.

Markets will be closed on Wednesday in observance of Muharram.

Finance Minister Nirmala Sitharaman is set to present the eagerly awaited Modi 3.0 government’s first Union Budget on July 23. Analysts anticipate a growth-centric budget aimed at further stimulating the economy.

Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra expressed optimism last week, suggesting that India has the potential to become the world’s second-largest economy by 2031 and the largest by 2060, given its significant inherent strengths.

This morning, Asian markets displayed mixed performance, while the dollar strengthened following Saturday’s attempted assassination of Donald Trump, which has increased his chances of re-election. Gold experienced a slight decline, whereas oil prices edged higher in Asian trading.

On Friday, U.S. stocks closed higher as large-cap stocks rebounded from the previous session's significant losses, bolstered by anticipated Federal Reserve rate cuts.

Investors seemed to overlook data indicating that U.S. producer prices inched up slightly more than expected in June, driven by increased costs of services.

The three major U.S. indices each rose approximately 0.6%, despite Wells Fargo, JP Morgan Chase, and Citigroup all declining post their quarterly earnings announcements. European stocks ended positively for the third consecutive session on Friday.

The pan-European STOXX 600 surged 0.9%, with Germany’s DAX climbing 1.1%, France’s CAC 40 rising 1.3%, and the U.K.’s FTSE 100 advancing 0.4%.