Major Asian equities declined at the start of trading on Monday due to mounting worries about a new Covid flare-up in China and before this week’s release of crucial statistics on the second-largest economy in the world.
Due to adverse global cues, domestic equity markets are expected to start the week poorly. While US markets ended the weekend flat, their Asian counterparts were largely negative on Monday. Global investors continue to be plagued by rising inflation. Investors at home will be keeping an eye on Q1 results for stock-specific activity.
The SGX Nifty indicates a bad start.
The Singapore Exchange’s Nifty futures traded 94 points, or 0.58 percent, lower at 16,133.5, indicating that Dalal Street would have a bad start to the week.
Tech View: On Friday, the Nifty50 increased for the third straight session, but the daily chart showed a bearish candle that resembled a hanging man. The 50-pack index was able to surpass 16,200 to close. As long as the index remains above the 16,170 level, according to analysts, the momentum is favorable.
India VIX: The fear index decreased by more than 4% from Thursday’s finish of 19.21 to 18.40 on Friday.
Asian stocks start primarily lower
At the opening of trading on Monday, major Asian markets decreased on rising on growing concerns about a fresh Covid flare-up in China and ahead of the release of key data this week on the world’s number two economy. MSCI’s index of Asia-Pacific shares outside Japan was down by 1.33 percent.
According to data available with the NSE, foreign portfolio investors (FPIs) sold domestic equities for a net total of Rs 109.31 crore. However, data indicates that DIIs became net buyers to the tune of Rs 34.61 crore. During the period of July 1–8, FPIs withdrew a net amount of Rs 4,096 crore from the Indian equities market.
A stronger-than-expected U.S. jobs report on Friday caused Treasury yields to rise, which caused Wall Street to close the day flat. This led to speculation that the Federal Reserve may push through additional interest rate hikes to tame the economy and curb inflation.
