Sensex, Nifty Set For Muted Start

(RTTNews) - Indian shares look set to open largely unchanged on Monday, though losses, if any, may remain limited owning to record-high U.S. stock performance and progress in trade negotiations.

Investors await a slew of economic reports, with India's May Industrial Production data due out later in the day, followed by the manufacturing Purchasing Managers' Index (PMI) for June on July 1 and the services PMI on July 3.

Focus will also shift to the upcoming earnings season as the week progresses.

Benchmark indexes Sensex and Nifty both jumped around 2 percent last week, buoyed by receding tensions in the Middle East and a sharp correction in global crude oil prices.

Asian markets were mixed this morning, with Japan leading regional gains. China's factory activity shrank for a third month in June amid weak demand while non-manufacturing activity increased in the month, separate set of data revealed today.

Gold was marginally lower, U.S. Treasuries slipped slightly and the dollar wallowed near its lowest in nearly four years against the euro as Senate negotiations continued over President Donald Trump's $4.5 trillion tax-cut package.

The nonpartisan Congressional Budget Office estimates the measure would add nearly $3.3 trillion to U.S. deficits over a decade. Oil prices were down nearly 1 percent ahead of an OPEC+ meeting.

U.S. stocks advanced on Friday after a White House official said the U.S. had signed a finalized trade framework with China under the Geneva deal.

Cooling tensions in the Middle East and favorable inflation and consumer sentiment reports also fueled hopes for more Fed rate cuts and helped traders shrug off comments from President Trump that he would end trade talks with Canada due to the country imposing a digital services tax on U.S. technology companies.

The S&P 500 and the tech-heavy Nasdaq Composite both rose about half a percent to close at new record closing highs, led by continued gains in AI-related stocks. The narrower Dow gained 1 percent.

European stocks rose sharply on Friday amid hopes that the U.S. may opt to impose softer tariffs than previously signaled.

The pan European STOXX 600 climbed 1.1 percent. The German DAX surged 1.6 percent, France's CAC 40 jumped 1.8 percent and the U.K.'s FTSE 100 added 0.7 percent.