Sensex, Nifty Seen Higher At Open

Indian shares are likely to open on a positive note Monday even as a cautious undertone may prevail amid lingering concerns surrounding the Russia-Ukraine war and the Covid-19 situation in China.

Ukraine has rejected Russian calls to surrender the port city of Mariupol amid Russia warning of “terrible humanitarian catastrophe”.

U.S. President Joe Biden has added a stop in Poland to his upcoming trip to Europe for urgent talks with NATO and European allies. Ukraine will soon receive U.S. weapons including Javelin and Stinger missiles.

Closer home, India’s foreign exchange reserves have plunged by over $9.64 billion during the week that ended on March 11 amid rupee depreciation, higher oil prices and capital outflows, central bank data showed.

The Indian stock market is facing troubling headwinds despite a renewed rise in Modi’s popularity, said Christopher Wood, global head of equity strategy at Jefferies.

Key benchmark indexes rose around 4 percent each last week, buoyed by a retreat in oil prices, hopes of progress in peace talks between Russia and Ukraine, and the Fed’s cautious approach to raising rates.

Asian markets traded mixed this morning and U.S. equity futures declined while crude oil prices rose amid a tense situation in the Middle East.

U.S. stocks finished higher for the fourth straight session on Friday to cap off the strongest week since November 2020, as President Joe Biden spoke with Chinese President Xi Jinping about the Russia-Ukraine war.

Biden reportedly described the implications and consequences if China provides material support to Russia. Xi told Biden that the United States and China each had an obligation to promote peace.

The Dow rose 0.8 percent and the S&P 500 added 1.2 percent while the tech-heavy Nasdaq Composite surged 2.1 percent, shrugging off hawkish comments from St. Louis Federal Reserve President Jim Bullard, who said the central bank risked losing credibility by moving too slowly to bring inflation down.

European stocks advanced on Friday despite peace talks between Russia and Ukraine failing to result in any progress.

The pan European Stoxx 600 climbed 0.9 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index inches up 0.1 percent and the U.K.’s FTSE 100 rose 0.3 percent.