(RTTNews) – Indian shares may follow global peers higher on Monday as investors continue to bet on a vaccine-fueled economic recovery.

Meanwhile, India’s retail inflation came down further to the lowest in 16 months in January, raising hopes that the Reserve Bank of India (RBI) will continue with its accommodative stance and keep the policy rates in a pause mode over the next six to nine months.

Earnings, wholesale inflation data and the trend in foreign institutional investments may sway sentiment as the week progresses.

Asian markets are moving higher after preliminary data showed Japan’s economy continued its recovery from the coronavirus pandemic in the October-December period in annualized real terms.

Prospects of higher U.S. fiscal stimulus and dovish Federal Reserve outlook also kept the overall mood positive.

The dollar edged up slightly, reducing gold’s appeal to buyers holding other currencies. Oil hit a fresh 13-month high on expectations that cold weather in Texas may see supply curbed from America’s largest shale patch.

U.S. stocks closed at record highs on Friday as coronavirus cases continued to fall and data showed an unexpected deterioration in U.S. consumer sentiment, raising expectations for additional fiscal stimulus.

The Dow Jones Industrial Average edged up 0.1 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both rose around half a percent.

European stocks advanced on Friday as investors tracked quarterly earnings and the gathering pace of vaccinations against Covid-19.

The pan European Stoxx 600 inched up 0.6 percent. The German DAX edged up 0.1 percent, France’s CAC 40 index gained 0.6 percent and the U.K.’s FTSE 100 added 0.9 percent.