(Reuters) - Indian shares are set to open higher on Monday tracking gains in global equities on hopes of the U.S. Federal Reserve easing its aggressive monetary policy stance, erasing some of the losses over the previous two sessions due to a sell off in Adani Group stocks.
India's NSE stock futures listed on the Singapore exchange were up 0.19% at 17,722.50, as of 08:05 a.m. IST.
Indian equities tumbled in the previous two sessions and closed at a three-month low on Friday, dragged by a short-seller attack on Adani group companies, which triggered a sell-off in banks.
The group faces a critical session today with the secondary share sale of the flagship Adani Enterprises seeing only 1% subscription on Friday.
Wall Street equities closed higher on Friday after data showed U.S. consumer spending fell for the second month in December, signaling a slide in inflation and raising hopes of a moderation in the pace of the Fed's rate hike at its policy meeting scheduled later this week.
Asian markets advanced on Monday, with the MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.18%. [MKTS/GLOB]
Besides the Fed's policy meeting, investors await rate decisions from other global central banks such as the European Central Bank and the Bank of England, later this week.
Investors will also shift focus to India's Union budget on Feb. 1, with the government's fiscal consolidation path and borrowing calendar for fiscal 2024 as triggers.
The Reserve Bank of India is expected to raise key policy repo rate by 25 bps at its next policy meeting due a week after the Union budget, ending the tightening cycle.
Foreign institutional investors sold 59.78 billion rupees ($733.41 million) worth of shares on a net basis on Friday, while domestic institutional investors bought 42.52 billion rupees ($521.65 million) of equities.
STOCKS TO WATCH
** Bajaj Finance: Co posts bigger-than-expected rise in consolidated net profit in third quarter, aided by a fall in provisions for bad loans.
** Vedanta: Co reports slide in consolidated net profit in Q3, dragged by soft metal prices.
** Tata Elxsi: Co reports arise in consolidated net profit in third quarter.