FX.co ★ Sensex, Nifty Seen Higher At Open

Indian shares are poised to begin the week on a positive note Monday, although volatility cannot be discounted due to mixed signals from global markets and escalating tensions in the Middle East, particularly with Israel intensifying its actions against Iranian-backed forces.

This week will be shorter for domestic markets, as they will be closed on Wednesday, October 2, in observance of Mahatma Gandhi Jayanti.

In terms of economic updates, core sector output data is expected later today. Additionally, PMI readings for both manufacturing and services for September are scheduled for release on Tuesday and Friday, respectively. Monthly automobile sales data for September will start coming in from October 1.

Asian markets exhibited mixed performance this morning. Chinese and Hong Kong stocks extended their rally from last week after three major Chinese cities relaxed homebuyer rules, and China's central bank adjusted the mortgage rate pricing mechanism to reduce financial burdens on homeowners.

Japan's Nikkei index declined over 4% following a significant yen appreciation, triggered by the election of perceived monetary policy hawk Shigeru Ishiba as the new prime minister.

The dollar weakened while gold prices eased yet remained on track for a fourth consecutive quarterly gain. Oil prices rose due to mounting concerns over potential supply disruptions from the Middle East.

U.S. stocks closed mixed on Friday. A broad sell-off in the semiconductor sector, led by Nvidia, overshadowed a soft PCE inflation report and strong consumer sentiment data. The Federal Reserve’s preferred inflation metric slowed to 2.2% in August from 2.5% in July, slightly below economists' expectations of 2.3%. However, core PCE remained steady at 2.7%, raising doubts about consecutive rate cuts from the Fed.

The Dow Jones Industrial Average inched up by 0.3% to reach a new record closing high, whereas the tech-heavy Nasdaq Composite and the S&P 500 fell by 0.4% and 0.1%, respectively.

European shares advanced on Friday, buoyed by China's economic stimulus measures and soft inflation data from the U.S., France, and Spain. The pan-European STOXX 600 rose by 0.5% to close at a record high. Germany's DAX surged 1.2%, France's CAC 40 climbed by 0.6%, and the U.K.'s FTSE 100 increased by 0.4%.