Sensex, Nifty May Succumb To Global Selloff

Indian shares are likely to open lower on Monday, mirroring weak global markets and amid relentless selling by FIIs.

The latest batch of corporate earnings, oil price movements and a slew of macroeconomic data may sway sentiment as the week progresses.

Market heavyweight Reliance Industries on Friday reported a 22.50 percent year-on-year rise in consolidated net profit for the March quarter, missing Street estimates.

Adani Ports, Asian Paints, Cipla, Eicher Motors, Larsen and Toubro, State Bank of India, Tata Motors and Tech Mahindra are among the prominent companies that will unveil their quarterly earnings this week.

Asian markets fell this morning, tracking declines in U.S. stock futures as Shanghai tightened COVID restrictions.

Meanwhile, speculation is rife that Russian President Vladimir Putin might declare war on Ukraine in order to call up reserves during his speech at “Victory Day” celebrations.

Gold prices dropped on a firmer dollar and bond yields edged up ahead of U.S. consumer inflation data due this week, while oil prices eased somewhat on fears about Chinese demand.

As the U.S. slapped new sanctions on Russia, the Group of Seven (G7) nations has committed to ban or phase out imports of Russian oil.

U.S. stocks fluctuated before closing mostly lower on Friday as rising oil prices and solid hiring data added to worries about the outlook for interest rates.

Data showed non-farm payroll employment surged by a better-than-expected 428,000 jobs in April, matching the revised jump seen in March. The jobless rate remained at a low 3.6 percent.

The tech-heavy Nasdaq Composite tumbled 1.4 percent to hit its lowest closing level in well over a year and the S&P 500 slid 0.6 percent to nearly one-year closing low, while the Dow dipped 0.3 percent to a two-month closing low.

European stocks also fell sharply on Friday amid lingering concerns about growth, soaring inflation and rising interest rates.

The pan European Stoxx 600 plunged 1.9 percent. The German DAX lost 1.6 percent, France’s CAC 40 index shed 1.7 percent and the U.K.’s FTSE 100 declined 1.5 percent.