Sensex, Nifty Set To Open Lower As Dollar And Yields Surge

Indian shares look set to open on a sluggish note Tuesday as traders return to their desks after a long holiday weekend.

Declining oil prices as well as encouraging readings on GST collection and core sector output may help limit losses to some extent.

The Reserve Bank of India’s (RBI) monetary policy meeting, monthly sale figures from auto and cement companies, manufacturing PMI numbers, the release of corporate earnings and macroeconomic readings on foreign exchange reserves, bank loan growth and deposit growth may attract investor attention as the week progresses.

Indian stock markets were closed on Monday on account of Gandhi Jayanti.

Benchmark indexes Sensex and Nifty ended Friday’s session on a positive note but the Nifty 50 posted its second-straight weekly loss.

Global sentiment remains fragile as U.S. Treasury yields and the dollar soared after hawkish signals from Fed officials.

Asian markets were down significantly this morning after the World Bank said that east Asia’s developing economies are likely to expand at one of the lowest rates in five decades.

China Evergrande Group shares jumped 23 percent in Hong Kong as trading in the heavily indebted Chinese property giant resumed following a halt last week.

The dollar held on to fresh highs and U.S. Treasury yields hit multi-year highs, weighed on bullion.

Oil prices fell more than 1 percent to hover near three-week lows as traders booked profits after last quarter’s hefty gains.

U.S. stocks ended mixed overnight as rising oil prices and bond yields offset signs of resilience in the U.S. manufacturing sector and investor optimism over lawmakers reaching a deal to avert government shutdown.

The Dow slipped 0.2 percent to hit a four-month low, while the S&P 500 inched up marginally and the tech-heavy Nasdaq Composite rose 0.7 percent.

European stocks fell on Monday to snap a two-day winning streak after data showed Eurozone manufacturing activity remained mired in a deep downturn last month. The pan European STOXX shed 1 percent to reach a six-month low.

The German DAX and France’s CAC 40 both dropped around 0.9 percent while the U.K.’s FTSE 100 declined 1.3 percent.