Indian shares look set to open higher on Monday following Friday’s sell-off.
However, energy stocks such as ONGC may come under selling pressure after oil plunged about $10 a barrel on Friday amid concerns about the outlook for energy demand.
The latest developments related to the new Covid-19 variant, macroeconomic data announcements and auto sales numbers may sway sentiment as the week progresses.
A World Health Organisation panel has named the new Covid strain ‘Omicron’ and classified it as a highly transmissible variant of concern, the same category that includes the Delta variant.
Asian markets were broadly lower this morning, though the downside remained capped as U.S. equity futures rose and oil rebounded some losses after Friday’s plunge.
U.S. stocks tumbled during post-holiday trading on Friday as reports of a new and possibly vaccine-resistant coronavirus variant detected in South Africa as well as a surge in new Covid-19 cases in Europe raised concerns the pandemic could continue to wreak havoc on the global economy.
The major averages fell between 2.2 percent and 2.5 percent to reach their lowest closing levels in at least a month.
European markets nosedived on Friday as authorities worldwide reacted with alarm to the new coronavirus variant, which has been detected in South Africa, Belgium, Israel and Hong Kong.
The pan European Stoxx 600 gave up 3.7 percent, marking its worst session since June 2020. The German DAX plunged 4.2 percent, France’s CAC 40 index plummeted 4.8 percent and the U.K.’s FTSE 100 lost 4.2 percent.
Market Analysis
Sensex, Nifty Seen Higher As Oil Prices Plunge
2021-11-29 02:54:33
