The domestic markets are likely to start the week on a weak note, post the rally witnessed in the past 5 weeks, due to record jump in COVID-19 cases globally. Trends on SGX Nifty indicate a negative start for the index in India with a 48 points loss. At 07:30 am, the Nifty futures were trading at 10,880, lower by 48 points or 0.4 per cent, on the Singapore Stock Exchange.
Wall Street stocks finished a volatile past week mostly higher on Friday, following mixed economic data as Netflix shares retreated following disappointing earnings. The Dow dipped 0.2 per cent, while the broad-based S&P 500 gained 0.3 per cent and the tech-rich Nasdaq added 0.3 per cent.
Asian shares began warily on Monday as investors eyed efforts to stitch together more fiscal stimulus in the eurozone and United States to help economies ride out the effects of a record jump in COVID-19 cases globally.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat at 541.49, with Australian shares down 0.3 per cent and South Korea’s KOSPI just a shade higher. Japan’s Nikkei was up 0.1 per cent.
Meanwhile, oil prices dipped on Monday, weighed down by the prospect that a rise in the pace of coronavirus infections could derail a recovery in fuel demand.
Brent crude was down 10 cents, or 0.2 per cent, at $43.04 a barrel by 0047 GMT, after dropping slightly last week. U.S. oil was off by 6 cents, or 0.2 per cent, at $40.53 a barrel, after gaining 4 cents last week.
On the stock-specific front, HDFC Bank shares will react to the June quarter earnings announced on July 18. HDFC Bank on Saturday reported a net profit of Rs 6,658.62 crore for the quarter ended June 30, marking an increase of 19.58 per cent compared to the corresponding period a year ago, driven by higher interest income and lower costs.
The BSE Sensex had gained 1.16 per cent and the NSE Nifty had climbed 1.24 per cent to end above the psychological 10,900 levels in the past week, backed by better-than-expected earnings reported by Infosys and Wipro, positive global cues and progress in the development of COVID-19 vaccine. On Friday, the Sensex had ended 548 points or 1.5 per cent higher at 37,020 and Nifty had climbed 162 points or 1.5 per cent to close at 10,902.