Indian shares are set for a muted start on Monday, tracking Asian peers, on caution ahead of U.S. and China inflation data as well as the Reserve Bank of India's monetary policy decision due later this week.

GIFT Nifty on the NSE International Exchange was up 0.09 per cent at 19,607.50, as of 7:56 a.m. IST.

Asian equities were subdued, with the MSCI Asia ex-Japan adding 0.05 per cent.

The RBI will also announce its policy decision on Thursday. The central bank kept rates unchanged in April and June, after hiking them by 250 basis points in the fiscal 2023.

Both the Nifty 50 and Sensex have logged losses for two weeks in a row. Foreign institutional investors (FIIs) have turned net sellers of Indian shares for six sessions in a row. FIIs sold $67.25 million worth of shares on Friday.

"FII trend in domestic equities too could be choppy in the near term," said Shrikant Chouhan, head of research (retail) at Kotak Securities.

"However, with India's strong macroeconomic numbers, and Morgan Stanley upgrading India to overweight, it would be difficult for overseas investors to ignore India despite higher valuation concerns."

Stocks to watch
  • Britannia Industries: Biscuit maker's profit rises 36 per cent on steady demand for packaged foods
  • Bank of Baroda: State-owned lender's net profit nearly doubles in June quarter, asset quality improves.
  • ICICI Bank: Private sector bank gets approval from the RBI to increase the shareholding in ICICI Lombard General Insurance Company up to 4 per cent.
  • Gujarat Fluorochemicals: Co reports fall in consolidated profit in June quarter.
Related Topics