Indian shares are set for a muted start on Monday after the benchmark Nifty 50 slipped into correction territory last week on concerns over slowing earnings and foreign outflows, while the Federal Reserve Chair’s indication of slower interest rate cuts also weighed on sentiment.

The Gift Nifty futures were trading at 23,528.6 as of 08:20 a.m. IST, indicating that the benchmark Nifty 50 will open near Thursday’s close of 23,532.7.

Indian markets were closed on Friday for a local holiday. Both the benchmark Nifty 50 and BSE Sensex indexes lost about 2.5% last week.

The Nifty 50 has shed over 10% from record highs hit on Sept. 27, confirming a technical correction on Nov. 13.

Foreign outflows for 34 consecutive sessions, amounting to about $15 billion, and a lacklustre earnings season have dragged down markets from all-time high levels.

Meanwhile, US treasury yields rose on Friday after Fed Chair Jerome Powell said that there was no need to rush to lower interest rates due to strong economic growth in the United States.

Higher US yields make emerging markets such as India less attractive to foreign investors, traders said, adding that they expect pressure on domestic markets to continue.

Indian shares log sixth weekly losses in seven on dull earnings

Other Asian markets opened higher on the day.

Wall Street equities closed lower on Friday, after comments from Fed officials, including Powell, clouded the outlook on the timing and magnitude of rate cuts.

Among individual stocks, Reliance Industries will be in focus after it completed the $8.5 billion merger of its Indian media assets with Walt Disney.