Sensex, Nifty Seen Higher At Open

Indian shares are likely to open higher on Monday, tracking gains across most global markets.

That said, a cautious undertone may prevail and volatility cannot be ruled out ahead of the listing of LIC shares and amid soaring tensions in Europe after Finland and Sweden expressed their intent to join NATO.

The outbreak of Covid-19 in North Korea also poses a big challenge, with the country having no COVID vaccines, antiviral treatment drugs or mass-testing capacity.

Asian stocks were mostly higher this morning despite China releasing shockingly weak industrial output and retail sales data.

China’s central bank cut mortgage loan interest rates for some home buyers and Shanghai is relaxing some of its lockdown restrictions, offering some respite to investors worried about slowing growth in the world’s second-largest economy.

Benchmark U.S. 10-year Treasury yields were up for a second straight session and the dollar started the week on a firm footing, while gold edged up slightly from three-month lows.

Oil prices fell more than 1 percent in Asian trade after having risen about 4 percent on Friday. U.S. equity futures were little changed ahead of a big earnings week for retailers.

U.S. stocks posted strong gains on Friday after a week of steep losses on concerns about elevated inflationary pressures and aggressive monetary policy tightening.

The S&P 500 surged 2.4 percent, marking its best day since May 4 and preventing it from tumbling into bear market territory.

The tech-heavy Nasdaq Composite surged as much as 3.8 percent to post its strongest single-day gain since November 2020 while the Dow added 1.5 percent.

European markets also showed strong moves to the upside on Friday as investors looked for bargains.

The pan European Stoxx 600 climbed 2.1 percent. The German DAX rallied 2.1 percent, France’s CAC 40 index gained 2.5 percent and the U.K.’s FTSE 100 added 2.6 percent.