India's GIFT Nifty was up 0.15% from its overnight close at 21,487 as of 8:15 a.m. IST, indicating that the Nifty 50 is likely to open around its Friday closing level of 21,456.65.

The Nifty and Sensex have gained about 6.6% so far this month, and are on course to their best monthly performance in 2023, with the Nifty closing at record highs in nine of 11 sessions.

Besides the easing global interest rate outlook, the rally has been driven by the Reserve Bank of India raising its fiscal 2024 growth forecast, return of foreign inflows, sustained domestic inflows, and moderation in oil prices.

Foreign portfolio investors (FPIs) purchased shares worth 427.33 billion rupees ($5.15 billion) in the first half of December, after turning net buyers in November, data from National Securities Depository showed.

Robust growth data in the U.S. and India and hopes of likely rate cuts in the next year have triggered the rally, said Joseph Thomas, head of research at Emkay Wealth Management.

"The impact may be short-lived and the probability of profit booking is very high," Thomas added.

Wall Street equities were subdued on Friday, but extended gains to the seventh week, aided by heightened expectations of rate cut in the first half of 2024 after U.S. Federal Reserve's dovish pivot. [.N]

Asia stocks slipped in a subdued start to a week where Japan's central bank might edge further away from its uber-easy policies. [MKTS/GLOB]

STOCKS TO WATCH:

** Tata Power: Company's unit Tata Power Solar Systems signs contract worth 4.18 billion rupees with NTPC.

** Mazagon Dock Shipbuilders: Company signs individual shipbuilding contracts with European client worth approximately $42 million.

** PB Fintech: Softbank entity SVF Python II Cayman sells 11.42 million shares through open market transactions, at 800.05 rupees per share.

** Zee Entertainment Enterprises: Company seeks further extension of a merger deadline from the Indian arm of Japan's Sony Group to make the scheme effective.

($1 = 83.0090 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K)