Indian shares look set to open sharply lower on Monday, tracking weak global cues as investors look ahead to the ECB, Federal Reserve and the Bank of England meetings this week for clarity on the outlook for tapering as well as interest rate timelines.
Metal stocks may succumb to heavy selling pressure after iron ore prices fell below for the first time in more than a year.
Benchmark indexes Sensex an the Nifty rose about 1 percent each last week after the government announced a relief package for the telecom sector and paved the way for a major clean-up of bad loans in the banking system.
Asian stocks fell this morning, with markets in Japan, China and South Korea closed for holidays. Hong Kong’s Hang Seng index tumbled nearly 4 percent to hit a 11-month low as investors fretted about the fate of Chinese property giant Evergrande.
The dollar hovered near a one-month high, denting the bullion’s appeal. Oil extended losses from Friday after rig count in the U.S. rose.
U.S. stocks fell on Friday as COVID-19 uncertainties, disappointing consumer sentiment data and the increasing likelihood of a corporate tax hike dented sentiment.
The Dow dropped half a percent, while the tech-heavy Nasdaq Composite and the S&P 500 both shed around 0.9 percent.
European stocks also ended lower on Friday, with China’s regulatory crackdown and signs of slowing global growth weighing on markets.
The pan European Stoxx 600 lost 0.9 percent. The German DAX fell 1 percent, France’s CAC 40 index gave up 0.8 percent and the U.K.’s FTSE 100 declined 0.9 percent.
Market Analysis
Sensex, Nifty Poised For Lower Open
2021-09-20 03:22:53
