Indian shares are set for a cautious start on Monday after weaker-than-expected US jobs data sparked concerns about the health of the American economy.

What does this mean?

Stocks in India are treading carefully with local markets nearing record highs and analysts forecasting some profit-taking. The GIFT Nifty was largely unchanged at 24,842.5 points as of 8:10 a.m. IST, suggesting the NSE Nifty 50 will open near its previous close of 24,852.15. On the broader Asian front, markets were down as well, with the MSCI Asia ex-Japan index falling 1.4%. This downturn follows Wall Street's slump on Friday, triggered by US employment data that showed weaker-than-expected job growth for August. Adding to the cautious sentiment, fears are mounting that the US may delay rate cuts, a development that could impact global financial conditions.

Indian markets saw a 1.5% dip last week after hitting record-high levels, driven by concerns over global economic conditions. With the US delaying rate cuts, markets are adopting a cautious stance. A senior analyst at Angel One recommends avoiding aggressive trades for the time being. It's advisable to keep a close eye on US inflation data for further insights into the Federal Reserve's future rate moves.

The bigger picture: Global jitters.

Foreign institutional investors offloaded Indian shares worth 6.21 billion rupees ($73.95 million) on a net basis last Friday, while domestic institutional investors buoyed the market, buying equities worth 21.22 billion rupees. Meanwhile, some Indian companies are securing substantial deals despite the cautious market sentiment - Mazagon Dock won a 14.86 billion-rupee order, and RBM Infracon secured a service contract worth 34.98 billion rupees. SpiceJet also managed to restructure its dues to Carlyle Aviation, signaling active corporate maneuvering even in tenuous times.