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Indian shares are set to open higher on Monday, ahead of a key inflation reading, after the Reserve Bank of India's indication that there may not be rate cuts soon spurred losses in the previous week.

India's GIFT Nifty was trading at 21,934.50 as of 7:57 a.m. IST, indicating that the NSE Nifty 50 will open near Friday's close of 21,782.50.

India's blue-chip indexes Nifty 50 and BSE Sensex posted weekly losses on Friday, dragged by financials and consumer stocks, as the RBI doused hopes of early rate cuts and forecast elevated inflation for the financial year 2025 in its policy decision on Thursday.

India's retail inflation likely eased to a three-month low of 5.09% in January on slowing food price rises, according to a Reuters poll of economists. The data is due post the closing bell on Thursday.

"This week, the markets will react to key macroeconomic data, including retail inflation on Monday and U.S. inflation reading on Feb. 13," said Santosh Meena, head of research, Swastika Investmart.

"The last leg of the December-quarter earnings season can lead to stock-specific movements as well," Meena added.

Foreign institutional investors bought Indian shares worth 1.42 billion rupees ($17.11 million) on a net basis on Friday. Domestic institutional investors sold a net 4.22 billion rupees of shares.

Most Asian markets, including Hong Kong and South Korea, were closed on Monday, while Chinese markets will remain shut for the week.

Wall Street equities advanced on Friday, led by chipmaker Nvidia, which hit a record high after Reuters reported it was building a new business unit. [MKTS/GLOB]

STOCKS TO WATCH:

** One 97 Communications: Company approved the formation of a group advisory committee on compliance and regulatory matters.

** Hero MotoCorp: India's largest two-wheeler maker beat third-quarter profit estimates, helped by festive demand.

** Power Grid Corporation of India: State-run energy transmission company acquired power transmission firm -Bidar Transmission for 188.8 million rupees.

** Divi's Laboratories: Drug ingredients maker reported a 17% rise in third-quarter profit, but missed estimates.

** Key earnings on Friday: Coal India, Steel Authority of India and Hindustan Aeronautics.

($1 = 83.0040 Indian rupees)