Sensex, Nifty Seen Opening Tad Higher

(RTTNews) - Indian shares look set to open higher on Monday despite renewed concerns about surging coronavirus cases in the county and the U.S.

During his monthly radio address 'Mann Ki Baat' on Sunday, Prime Minister Narendra Modi urged people not to lower their guard as coronavirus is still as fatal as it was in the beginning.

Meanwhile, as Unlock 2 comes to an end on July 31, the Ministry of Home Affairs is preparing the guidelines for the next phase; Unlock 3. Cinema halls may reopen from August 1 while metro services and schools could take time to resume.

Reaction to the latest batch of earnings and the expiry of July series derivative contracts may sway sentiment as the week progresses.

Market heavyweight Reliance Industries as well as other prominent companies including Bharti Airtel, Dr Reddy's Laboratories, HDFC, Kotak Mahindra Bank, Maruti Suzuki, SBI, Tech Mahindra and Ultratech Cement will unveil their quarterly earnings this week.

On the global front, investors are likely to remain focused on U.S. fiscal stimulus talks and the Federal Reserve's July monetary policy meeting, with no changes to rates expected.

Asian markets are trading mixed this morning as the dispute between China and the U.S. on the issues over Hong Kong's national security law and South China Sea deepened.

On the positive side, profits at China's industrial firms rose for a second straight month and at the fastest pace in over a year, adding to signs of economic recovery. The dollar index eased, helping gold prices climb to a record high. Oil prices slipped as the Covid-19 pandemic took a turn for the worse.

U.S. stocks closed lower on Friday as investor sentiment took a hit over rising Sino-American tensions and a lack of progress on another round of federal stimulus.

The Dow Jones Industrial Average shed 0.7 percent, the tech-heavy Nasdaq Composite dropped 0.9 percent and the S&P 500 gave up 0.6 percent.

European markets fell on Friday as increasing global Covid-19 cases, worsening ties between the world's two largest economies and continued uncertainty about trade talks between the U.K. and the European Union dented investor appetite for riskier assets. The pan European Stoxx gave up 1.7 percent. The German DAX tumbled 2 percent, France's CAC 40 index lost 1.5 percent and the U.K.'s FTSE 100 declined 1.4 percent.

Back home, benchmark indexes jumped 3 percent and 2.6 percent respectively last week to log gains for the sixth consecutive week on the back of better-than-expected corporate earnings and positive reports of potential vaccine developments.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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