India's GIFT Nifty was trading at 21,423.50 as of 8:04 a.m. IST on Tuesday, indicating the NSE Nifty 50 will likely open above its Friday's close of 21,349.40.

Both the NSE Nifty and BSE Sensex lost about 0.5% last week, snapping their longest weekly winning streak in six years as some investors booked profits.

Still, the blue-chip indexes have gained 12.65% and 12.07% over the last seven weeks, helped by strong domestic macroeconomic data, a return of foreign inflows, and moderation in oil prices.

U.S. stocks were mixed on Friday as investors headed into the Christmas holiday weekend, having digested cooler-than-expected inflation data. [.N]

Asian stocks started the week higher, with MSCI's index of Asia-Pacific shares outside Japan rising 0.18%. [MKTS/GLOB]

Markets are pricing in a 75% chance of a 25 basis points rate cut from the Fed in March, according to the CME FedWatch tool, compared with a 21% chance at the end of November.

STOCKS TO WATCH:

** Reliance Industries: The company and Walt Disney have signed a non-binding term sheet to merge their Indian media operations, the Economic Times reported on Monday, citing sources.

** One 97 Communications: Parent of fintech firm Paytm said on Monday there would be a "slight reduction" in its workforce as part of cost-cutting measures, citing Artificial Intelligence-driven automation.

** Zydus Lifesciences: Co says U.S. FDA closed its inspection at the API site situated at Changodar, Ahmedabad with 6 observations.

(Reporting by Rama Venkat in Bengaluru; Editing by Varun H K)