(fxcue news) - Indian shares look set to open on a tepid note Tuesday after government data showed retail inflation in the country rose to a nine-month high of 5.49 percent in September, due to higher food prices. That marks a significant increase from 3.65 percent in August. Meanwhile, Reliance Industries reported a decline in profits for the third consecutive quarter, as its oils-to-chemicals business underperformed once again. Benchmark indexes Sensex and Nifty rose around 0.7 percent each on Monday, with IT stocks leading the surge. The rupee closed flat at 84.06 against the dollar. Asian stocks were mostly lower this morning, though Japanese markets surged as traders returned from a long holiday weekend. The U.S. dollar traded at an over two-month high against major currencies and gold was little changed amid bets that the Federal Reserve will proceed with modest rate cuts in the near term. Thursday's ECB meeting remains on investors' radar, where the central bank is likely to deliver another interest rate cut. Oil prices fell more than 3 percent in Asian trading, extending losses for a third straight session after reports emerged that Israel may avoid targeting Iran's crude infrastructure. U.S. stocks rallied to new records overnight on relief that interest rates are finally heading back down and that the economy is on a solid footing. The Dow gained half a percent and the S&P 500 jumped 0.8 percent to reach new record closing highs while the tech-heavy Nasdaq Composite advanced 0.9 percent. European stocks closed higher for a second day running on Monday as investors weighed the prospects of a 25-bps ECB rate cut later in the week. The pan-European STOXX 600 ended half a percent higher at a two-week high. The German DAX climbed 0.7 percent, France's CAC 40 edged up 0.3 percent and the U.K.'s FTSE 100 added half a percent.