Indian Shares Seen Tad Lower At Open

Indian shares look set to open a tad lower on Monday as investors await cues from the quarterly earnings season, with NALCO due to unveil its earnings results later in the day.

There will be changes in Nifty 50, Nifty Next 50, Nifty 100, Nifty 200 and Nifty 500 indexes on Wednesday.

Certain companies will be included in the respective indexes while others excluded. Also, Tata Steel will be holding its Annual General Meeting on Wednesday.

Automobile companies will unveil their monthly sales numbers for the month of June on Thursday, with investors expecting a strong rebound in volumes.

Benchmark indexes Sensex and the Nifty both rose over 1 percent last week as investors reacted to Fed Chair Jerome Powell’s testimony, Reliance Industries’ AGM and the expiry of near-month derivative contracts.

Asian markets were subdued this morning after a spike in coronavirus cases across the region over the weekend.

Greater Sydney has entered a two-week lockdown and Indonesia is battling record high cases, while a lockdown is set to be extended in Malaysia.

Thailand announced new restrictions in Bangkok and other provinces to contain a surge in COVID-19 cases.

The dollar held firm this morning, while oil hovered around 2-1/2 year highs on expectations demand growth will outstrip supply and OPEC+ will be cautious in returning more crude to the market from August.

U.S. stocks ended Friday’s session broadly higher as investors picked up shares of companies mostly tied to an economic recovery.

A key U.S. inflation measure closely watched by the Federal Reserve posted its biggest year-on-year increase in May since 1992, but the rate of increase slowed since April.

The S&P 500 rose 0.3 percent to reach a fresh record high and the Dow gained 0.7 percent, while the tech-heavy Nasdaq Composite slipped 0.1 percent.

European stocks ended mixed on Friday after U.S. President Biden embraced a bipartisan Senate infrastructure deal.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX inched up 0.1 percent and the U.K.’s FTSE 100 added 0.4 percent while France’s CAC 40 index eased 0.1 percent.