Sensex, Nifty Set For Weak Start

Indian shares look set to open lower on Monday, mirroring weak cues from other Asian markets and amid caution ahead of key macroeconomic data lined up this week.

The MPC’s interest-rate decision, GDP data for the first quarter, fiscal deficit numbers for the April-March period, monthly auto sales numbers, core sector figures and Markit Manufacturing PMI and services data would be the major highlights of this week.

On the COVID-19 front, India posted its lowest daily rise in infections in over a month and the painfully high death count in the second wave of the pandemic is finally coming down, raising expectations of state-wise unlocking and giving hopes of economic recovery.

Asian markets are moving lower as tension between the U.S. and China climbed amid calls for a fresh probe into the origins of COVID-19 and China said its manufacturing activity grew at a slightly slower pace in May.

A rapidly rising yuan also drew increased scrutiny in global financial markets, with two state-run newspapers flagging risks fueled by rapid gains in the currency.

Brent crude futures for August held firm in Asian trade, after having settled at their highest in two years on Friday.

Bitcoin traded around $35,000 after a Friday slump as Bank of Japan Governor Haruhiko Kuroda warned about the token’s recent volatility and speculative trading.

U.S. stocks eked out modest gains on Friday as President Joe Biden’s budget revealed a blueprint for addressing long-standing inequities in the U.S. economy and an inflation reading preferred by the Federal Reserve showed an acceleration in the pace of price growth, but not as much as traders had feared.

The Dow edged up 0.2 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both inched up around 0.1 percent.

European stocks also ended in positive territory on Friday on the back of upbeat U.S. economic data and prospects of additional fiscal stimulus.

The pan European Stoxx 600 rose 0.6 percent. The German DAX and France’s CAC 40 index both gained around 0.7 percent while the U.K.’s FTSE 100 ended flat with a positive bias.