(fxcue news) - Indian shares are likely to open on a positive note Tuesday, though overall gains may remain capped somewhat as investors await key U.S. inflation data this week for clues on the size of potential rate cuts. Also, domestic industrial production and retail inflation data due this week might provide critical insights into the health of the Indian economy and could play a significant role in the Reserve Bank of India's (RBI) future monetary policy decisions. Meanwhile, broader markets may see stock-specific action after the Goods and Services Tax Council reduced rates on cancers drugs, namkeens and savoury food items. A group of ministers (GoM) has also been set up to recommend rate reduction on medical health insurance. Benchmark indexes Sensex and Nifty rose around half a percent each on Monday while the rupee moved in a narrow range before ending little changed at 83.95 against the dollar. Asian markets were mostly higher in cautious trade ahead of China's trade data due for release today. The dollar was steady while gold edged lower but held above $2,500 per ounce. Oil prices were little changed after climbing on Monday due to supply disruptions from Tropical Storm Francine. U.S. stocks rose sharply overnight after last week's steep losses on uncertainty over the U.S. economic outlook. The Dow, the tech-heavy Nasdaq Composite and the S&P 500 all surged around 1.2 percent as debate swirled around the scale and speed of potential rate cuts by the Federal Reserve. European stocks closed on a firm note Monday to snap a five-day losing streak. The pan-European STOXX 600 rose 0.8 percent. The German DAX climbed 0.8 percent, France's CAC 40 added 1 percent and the U.K.'s FTSE 100 gained 1.1 percent.