Sensex, Nifty Set To Extend Losses

Indian shares look set to extend losses from the previous session on Tuesday as concerns mounted over the resurgence of coronavirus cases in many countries.

Geopolitical worries also remain on investors’ radar after the U.S., the U.K. and their allies accused three Chinese state security officials of coordinating a vast hacking campaign to steal sensitive and secret information from government entities, universities and corporations around the world.

On the earnings front, HCL Technologies reported an 8.5 percent sequential rise in consolidated net profit for the June quarter, while ACC reported an over two-fold jump in quarterly consolidated net profit.

Adani Group companies could be in focus today after the government said market regulator SEBI and customs authorities are investigating some group companies for non-compliance of rules.

Benchmark indexes Sensex and the Nifty fell more than 1 percent each on Monday, while the rupee ended down 0.4 percent at 74.87/88 against the dollar, marking its biggest single-day fall since June 17.

Asian markets were moving lower this morning while the dollar held gains and ten-year yields climbed back above 1.2 percent amid signs the impact of global commodity inflation was gradually broadening.

U.S. President Joe Biden on Monday said an increase in inflation was expected to be temporary and he expects the Federal Reserve to take action if needed.

Oil stabilized in Asian trading after plunging around 7 percent in the previous session on news of an OPEC+ deal to boost supply into 2022. Bitcoin traded just above the closely watched $30,000 level.

U.S. stocks tumbled overnight to reach their lowest closing levels in almost a month as new COVID-19 cases continued to surge, oil prices plummeted on oversupply fears and data showed an unexpected dip in homebuilder confidence.

The Dow plunged 2.1 percent, the tech-heavy Nasdaq Composite lost 1.1 percent and the S&P 500 shed 1.6 percent.

European stocks also fell sharply on Monday amid mounting concerns about the rapidly surging delta variant of the coronavirus in several countries across Europe Asia and the U.S.

The pan European Stoxx declined 2.3 percent. The German DAX lost 2.6 percent, France’s CAC 40 index slumped 2.5 percent and the U.K.’s FTSE 100 gave up 2.3 percent.