Sensex, Nifty Seen Opening On Cautious Note

Indian shares look set to open on a cautious note Monday as investors fret about Covid-19 disruptions impacting the global economy.

Meanwhile, FMCG firms, logistics companies/cold chain companies, especially those operating in rural geographies, agri-related companies could be in focus after the government said it would repeal the Farm Laws enacted by Parliament in September 2020.

FII fund flows, the expiry of monthly F&O contracts, oil price movements and the direction of rupee may sway market sentiment as the week progresses.

Key benchmark indexes Sensex and the Nifty tumbled nearly two percent last week following two straight weekly gains. Broader markets also weakened on concerns over overstretched valuations.

Asian markets traded lower this morning as a resurgence of Covid-19 cases across Europe and the introduction of new coronavirus restrictions hit investors’ risk appetite.

Gold steadied after hitting a two-week low as the dollar index retreated from Friday’s highs. Oil extended declines on the prospect of key consumers adding emergency supplies.

U.S. stocks ended mixed on Friday amid signs of rising Covid-19 cases in the U.S. and Europe.

The Dow shed 0.8 percent to extend losses for the third straight session while the S&P 500 slipped 0.1 percent. The tech-heavy Nasdaq Composite rose 0.4 percent to reach a new record closing high as bond yields fell.

European stocks ended Friday’s session in the red as Covid-19 related lockdowns returned to the continent, raising concerns about growth.

The pan European Stoxx 600 eased 0.3 percent. The German DAX and France’s CAC 40 index both fell around 0.4 percent while the U.K.’s FTSE 100 dipped half a percent.