The key benchmark indices are likely to have a flat start as Nifty futures on the Singapore Exchange traded 2.5 points, or 0.01 per cent, higher at 17,844.50, signaling that Dalal Street was headed for a muted start on Monday.
Markets last week
The market clocked 1.68 percent gains in the week ended September 2 after three weeks of consolidation, backed by declining oil prices, consistent foreign inflows and rally in global markets later in the week. All the sectors, barring auto, participated in the market run-up, with IT, infrastructure, banks, and metals being the biggest gainers rising 2-3.5 percent.
The 30-pack Sensex advanced 104 points to end the day at 59,793. Its broader peer, Nifty50, ended at 17,833, up 35 points. This was the first time since January 2022 that the NSE barometer closed the week above 17,800 level. For the week, Nifty added 1.68 per cent while Sensex 1.66 per cent.
US Stocks Rally
US stocks rallied Friday as Wall Street caps off a strong weekly performance, recovering from a Federal Reserve-induced slump. The Dow Jones Industrial Average gained 377.19 points, or about 1.19% to 32,151.71. The S&P 500 jumped 1.53% to 4,067.36, and the Nasdaq Composite climbed 2.11% to 12,112.31.
Asian equities extend risk rally as dollar weakens
Asian share markets made cautious gains on Monday on hopes a key reading on U.S. inflation will show some cooling, while the U.S. dollar was restrained by the risk of higher European interest rates and Japanese intervention.
Japanese and Australian equities climbed about 1% and US futures edged higher after the S&P 500 and Nasdaq 100 snapped three-week losing streaks on Friday. Profitless tech firms, meme shares and Bitcoin all rallied into the end of the week. Markets in China, Hong Kong and South Korea are closed for holidays Monday.
Investors will also be digesting the potential impact of Ukraine’s counter-offensive, after its forces continued their rapid advance in the Kharkiv region, exploiting an extraordinary collapse of Russian defenses.
Oil prices slide
Oil prices slipped during Asian trade on Monday as the prospect of further interest rate hikes in the United States and Europe to quell inflation and the imposition of strict COVID-19 restrictions in China overshadowed the global demand outlook.
The rupee appreciated by 12 paise to close at 79.57 against the US dollar on Friday, tracking positive domestic equities and foreign fund inflows.