Sensex, Nifty Seen Opening Up After Wall Street Rally

(RTTNews) - Indian shares are seen opening a tad higher on Monday amid a growing sense of optimism surrounding the U.S. economic outlook and sustained FPI flows, which hit a 10-month high of Rs 47,148 crore in June.

News related to the HDFC merger, oil price movements, fluctuations in bond markets, June auto sales figures, manufacturing as well as services PMI numbers and the release of the FOMC minutes on Wednesday would likely sway markets as the week progresses.

HDFC, the parent of the country's largest private sector lender, was merged into HDFC Bank on Saturday, with boards of both the entities clearing the plan first presented on April 4 last year.

Global manufacturing and services PMI coupled with U.S. nonfarm payrolls data are also lined up for the week.

Asian markets were broadly higher this morning even as a private-sector survey showed China's factory activity grew more slowly in June, reinforcing the view that the world's second-largest economy is still struggling to rebound.

Oil and gold prices were seeing modest losses in Asian trade, weighed down by a slightly stronger U.S. dollar.

U.S. stocks posted solid gains on Friday as new data showing lower consumer spending and cooling inflation fueled hopes the Fed could be nearing its rate-hiking cycle.

The Dow gained 0.8 percent and the S&P 500 climbed 1.2 percent to reach the highest since April 2022, while the tech-heavy Nasdaq Composite jumped 1.5 percent to boast its biggest first-half gain in 40 years.

European stocks closed higher on Friday as a measure of Eurozone inflation extended its decline in June and weak China factory activity data raised expectations of additional stimulus.

The pan European STOXX 600 advanced 1.2 percent. The German DAX surged 1.3 percent, France's CAC 40 rallied 1.2 percent and the U.K.'s FTSE 100 rose 0.8 percent.