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Benchmark equity indices BSE Sensex and Nifty50 were trading higher after opening in the red on Monday, weighed down by weak sentiment flowing from US markets.
At 11:00 AM, the BSE Sensex was pu 155 points, or 0.19 per cent, at 81,338, while the Nifty 50 was at 24,882, higher by 30 points, or 0.12 per cent.
That apart, Asian share markets slipped on Monday as worries about US and Chinese growth weighed on sentiment, though US and European stock futures did manage a bounce while bond yields came off their lows.
Data on consumer prices (CPI) from China showed the Asian giant remained a driver of global disinflation, with producer prices falling an annual 1.8 per cent in August when analysts had looked for a drop of 1.4 per cent.
The CPI also missed forecasts at 0.6 per cent for the year, with almost all the rise in food prices, and goods prices up just 0.2 per cent, pointing to subdued domestic demand.
Chinese blue chips dropped 1.0 per cent to seven-month lows, having already shed 2.7 per cent last week.
Japan's Nikkei bore the brunt of the early selling as tech stocks declined, losing another 0.8 per cent on top of a nearly 6 per cent slide last week.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1.2 per cent, after shedding 2.25 per cent last week, while South Korea's market fell 0.2 per cent.
On a steadier note, S&P 500 futures rallied 0.4 per cent and Nasdaq futures gained 0.6 per cent, following Friday's slide. EUROSTOXX 50 futures added 0.5 per cent and FTSE futures firmed 0.6 per cent.
Fed fund futures dipped as investors wondered whether the mixed US August payrolls report would be enough to tip the Federal Reserve into cutting rates by an outsized 50 basis points when it meets next week.
So far, markets imply a 30 per cent chance of a large cut, in part due to comments from Fed Governor Christopher Waller and New York Fed President John Williams on Friday, though Waller did leave open the option of aggressive easing.
Investors are considerably more dovish and have priced in 113 basis points of easing by Christmas and another 132 basis points for 2025.
Data on August US consumer prices on Wednesday should underline the case for a cut, if not the size, with headline inflation seen slowing to 2.6 per cent from 2.9 per cent.
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