The markets are likely to start the week on a tepid note, given the un-enthusing cues from the global front. MSCI’s broadest index of Asia-Pacific shares outside Japan stumbled 0.7 per cent. Japan’s Nikkei fell 0.8 per cent while South Korea’s KOSPI was off 1.4 per cent and Australian shares eased 0.5 per cent. Trends on SGX Nifty indicate a negative opening for the broader index in India. The Nifty futures were trading with a minor loss of 20 points or 0.1 per cent at 12,064 on the Singaporean Exchange.
Wall Street pulled back from record levels on Friday. The Dow Jones slipped 0.6 per cent to 29,182, S&P 500 dropped 0.2 per cent to 3,337 and Nasdaq Composite was down 0.1 per cent at 9,559.
In commodities, oil prices extended their decline as the specter of excess supplies loomed as the coronavirus outbreak hit demand in China. Brent crude slipped 38 cents to $54.09 a barrel.
In this week, the macroeconomic data announcements, Delhi poll results and the coronavirus outbreak are likely to be on the investors’ radar. The government will announce the Industrial production and retail inflation data on Wednesday, and the WPI inflation numbers on Friday. The Delhi poll results will be announced on Tuesday.
And the coronavirus shows no signs of abating; the death toll in China’s coronavirus outbreak rose to 811 on Sunday, surpassing the number of fatalities in the SARS epidemic. The epidemic seems largely confined to China for the time-being, with some sporadic incidents reported elsewhere. If a global spillover takes places, that could pose a terrifying headwind risk for the global markets.
Back home, Sensex had fallen 164 points to 41,141 and the Nifty had closed 39 points lower at 12,098 on Friday.