Sensex, Nifty Seen Flat To Tad Higher At Open

(RTTNews) - Indian shares may open on a positive note Monday after reports emerged that the U.S. Senate is nearing a potential deal to extend government funding.

It is learnt that at least eight Senate Democrats are willing to vote to reopen the government if they secure some concessions from the White House.

The next set of Q2 corporate earnings, the release of inflation data and any new developments surrounding the India-U.S. trade deal may influence trading sentiment as the week progresses.

Benchmark indexes Sensex and Nifty recovered from sharp early losses but still ended lower on Friday to extend their losing streak for a third day running due to profit taking after October's strong rally to record highs.

Asian markets were mostly higher this morning after data showed China's consumer price inflation ticked up in October. The producer price index shrank slightly less than expected.

The dollar paused its recent rally and gold prices surged more than 1 percent on signs of a weakening U.S. economy, while oil prices were up nearly half a percent on optimism that the U.S. government shutdown could end soon.

U.S. stocks rebounded from day's lows to end mixed on Friday as new economic data added to worries of an economic slowdown.

A survey from the University of Michigan revealed that consumer sentiment has neared its lowest level ever in November due to the ongoing federal government shutdown.

Markets came off their lows after top Senate Democrat Chuck Schumer offered to provide Democratic support for passage of a short-term funding bill to reopen the government in exchange for Republican support for a one-year extension of enhanced Obamacare tax credits.

The Dow edged up by 0.2 percent and the S&P 500 added 0.1 percent while the tech-heavy Nasdaq Composite slid 0.2 percent, pressured by more pressure in artificial intelligence stocks.

European stocks closed lower on Friday to extend losses from the previous session amid concerns about high valuations in AI-related stocks and uncertainty about the outlook for U.S. economic growth.

The pan-European Stoxx 600 dipped 0.6 percent. The German DAX fell 0.7 percent, France's CAC 40 eased 0.2 percent and the U.K.'s FTSE 100 shed 0.6 percent.