Indian Market Likely To Open Lower On Weak Global Cues
(RTTNews) - Indian shares look headed for a weak opening on Monday, tracking cues from Asian markets, where the mood is bearish after Wall Street ended sharply lower on Friday amid rising worries about global growth.
Global growth worries have increased amid an escalation in U.S.-China trade conflict and after the U.S. announced a 5% tariff on Mexican goods imported into the U.S. and stated that the rate will increase gradually if Mexico does not make efforts to stop illegal immigration of people into the U.S.
Falling crude oil prices may help limit market's losses.
The auto sector will see some brisk activity in the session with sales data for the month of May providing direction to stocks.
Maruti Suzuki's total vehicle sales dropped as much as 22% in May.
Mahindra & Mahindra reported a 3% decline, while Eicher Motors and Escorts said their vehicle sales dropped by 19.7% and 18%, respectively, in May.
Cement shares will be in focus as well with May cement shipments figures setting the trend.
Neyveli Lignite Corporation said it has achieved yet another milestone by lighting up the boiler of the second unit of the upcoming 2 x 500 MW lignite-firex Neyveli New Thermal Power Project.
Investors will be looking ahead to the Reserve Bank of India's monetary policy review, due on Thursday. Some analysts expect the central bank to cut interest rate by 25 basis points. If it does, it will the third consecutive rate cut by the central bank.
On Friday, the benchmark 30-share BSE Sensex dropped 117.77 points or 0.30 percent to 39,714.20 while the broader Nifty index ended down 23.10 points or 0.19 percent at 11,922.80. Both Sensex and the Nifty hit record intraday highs in the session.
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