Sensex, Nifty Likely To See Soft Start

Indian shares look set to open slightly lower on Monday, tracking mixed global cues and amid fears of rising inflation as oil prices held near multi-year high, underpinned by an improved outlook for demand.

India's industrial production surged by a whopping 134 percent in April 2021, as compared to April 2020, government data showed but that was due to a low base effect last year, when the nationwide lockdown was in full force and a majority of factories were not operating.

On the COVID-19 front, India continues to witness a downward trend in new cases, with the country reporting the lowest daily spike in infections since 31 March with 67,290 new cases in the last 24 hours.

Retail and wholesale inflation data for May as well as the outcome of the Fed's monetary policy meeting may sway sentiment as the week progresses.

Asian stocks traded mixed this morning, with markets in Australia, mainland China and Hong Kong closed for holidays.

The dollar held steady against major currencies while gold dipped to over one-week low after Elon Musk said that Tesla will resume allowing bitcoin transactions when miners use more renewable energy.

U.S. stocks ended mostly higher on Friday as bond yields fell on dovish Fed and ECB talk, and a measure of U.S. consumer sentiment rose more than expected in early June.

The Dow inched up marginally as a bipartisan group of 10 senators unveiled an infrastructure spending plan.

The S&P 500 edged up 0.2 percent to reach a new record closing high, while the tech-heavy Nasdaq Composite gained 0.4 percent to its best closing level in over a month.

European stocks advanced on Friday despite lingering concerns about inflation. The pan European Stoxx 600 rose 0.7 percent.

The German DAX and France's CAC 40 index both climbed around 0.8 percent while the U.K.'s FTSE 100 gained 0.7 percent.

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