BENGALURU: India’s benchmark index Nifty 50 is set to open at a new record high on Monday, continuing its rally from last week on strong domestic conditions, even as stronger-than-expected US jobs data cut down expectations of a Fed rate cut in March.

India’s GIFT Nifty was down 0.02% from its overnight close at 21,073 as of 8:12 a.m. IST, indicating that the Nifty 50 will open higher than Friday’s close of 20,969.40.

The Nifty 50 and Sensex extended gains for the sixth week in a row on Friday, adding about 3.5% each to notch up the longest weekly winning streak since December 2020.

The ongoing rally is supported by strong macroeconomic data, a drop in crude oil prices, favourable global interest rate outlook, return of foreign inflows and sustained inflows from domestic mutual fund investors.

The Reserve Bank of India also raised its fiscal year growth forecast to 7% from 6.50% earlier, on Friday, while maintaining its key repo rate at 6.50%.

Wall Street equities and US Treasury yields rose on Friday after data showed that jobs growth accelerated in November.

Expectations of US Federal Reserve rate cut by March 2024 slipped to 42% on Monday from 65% on Thursday, according to CME’s FedWatch Tool.

The consumer price inflation data for November, due on Tuesday would be crucial for US interest rate outlook.

The Fed is expected to keep rates unchanged in its policy decision on Wednesday.

Indian stocks post longest weekly winning run in three years

European Central Bank, Bank of England, Norges Bank and the Swiss National Bank will also announce their monetary policy decision this week.

Asian markets opened lower, dragged by data from China indicated deflationary pressure in the world’s second largest economy.