Sensex, Nifty Likely To Open Weak On Negative Global Cues

The domestic stock markets are likely to open in the red on the back of negative global cues. Asian shares struggled to rally on Monday and SGX Nifty is trading in the red. Trends on SGX Nifty indicate a negative opening for the Nifty, with a 95-point loss. At 7:30 am, the Nifty futures were trading at 15,759, lower by 95 points or 0.87 per cent, on the Singapore Stock Exchange.

Asian shares struggled to rally on Monday as super-strong US corporate earnings sucked funds out of emerging markets and into Wall Street, where records were falling almost daily.

Japan's Nikkei bounced 1.6 per cent in early trade, but that was off a seven-month low. South Korea has fared somewhat better thanks to demand for tech stocks, but was little changed on Monday.

Stocks rallied to records on Wall Street Friday, and the Dow Jones closed above the 35,000 level for the first time, as the market continued to roar back from its short-lived swoon at the start of the week. The S&P 500 index climbed 44.31, or 1 per cent to 4,411.79 to top its prior all-time high, set early last week. The Dow rose 238.20 pouints, or 0.7 per cent, to 35,061.55, and the Nasdaq composite gained 152.39, or 1 per cent, to 14,836.99.

Meanwhile, oil prices were little changed on Monday as investors balanced concerns about fuel demand from the spread of COVID-19 variants and floods in China against expectations of tight supplies through the rest of the year.

Brent crude futures for September fell 3 cents to $74.07 a barrel and U.S Texas Intermediate crude was at $71.99 a barrel, down 8 cents.

On the earnings front, Axis Bank, Kotak Mahindra Bank, Larsen & Toubro, Tata Motors, SBI Life Insurance Company and Vedanta will be among the major companies to declare their Q1 numbers during the day.

On Friday, the BSE Sensex rose 138.59 points to 52,975.80 and Nifty gained 32 points to close at 15,856.