Indian shares are likely to witness a bearish opening as the global markets look subdued with SGX Nifty trading 24 points lower.The Indian benchmarks are poised to open lower on Monday, tracking weak cues from fellow Asian peers as investors remained wary ahead of the US President Donald Trump's first address to the US Congress on Tuesday.
Weak trend in the SGX Nifty Index Futures for February delivery, which were trading at 8,942.50, up by 28.5 points or 0.32 per cent, at 10:54 AM Singapore time, also signaled a negative opening for Sensex. The market may see some stock specific movement as concerns related to corporate earnings and demonetization already left behind.
Traders will shift focus to the outcome of the state election results for more clarity on the government's capacity to revive stalled reforms, which will set future direction for markets. This week market directions will be set by macroeconomic data such as core sector data, Nikkei India Manufacturing PMI and Services PMI lined up.
The 30-share barometer index of Bombay Stock Exchange, Sensex closed at 28892.97, up by 28.26 points or by 0.1 per cent, and the NSE Nifty ended at 8939.5, up by 12.6 points or by 0.14 per cent.
Asian stocks erased early losses but stayed below 19-month highs on Monday as a renewed drop in sovereign bond yields on political concerns prompted some investors to move to the sidelines after a recent rally.
The White House on Monday will send federal departments a budget proposal containing the defense spending increase President Donald Trump promised, financed partly by cuts to the U.S. State Department, Environmental Protection Agency and other non-defense programs, two officials familiar with the proposal said.
Europe's stocks benchmark fell more than 1 percent on Friday while German and French indexes slid by their most in nearly 5 months as jitters in the bond markets over political risk looked to have spilled over into equities.
Major Headlines of the day:
Cadila to launch first tetravalent inactivated influenza vaccine.
Lead prices surge 15% in last five months
L&T arm bags Rs1,100 crore contract from IOC to build an Indmax project in Assam
Trend in FII flows: The FIIs were net buyers of Rs 392.33 the cash segment on Monday while the DIIs were net sellers of Rs -445.04 as per the provisional figures.