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Indian stock markets to open lower today -

Apprehensions surrounding rising Omicron infections in the sub-continent are expected to weigh down on the Indian stock markets, which seem to be headed for a weak opening on Monday.

The Nifty 50 Futures Index, listed on the Singapore Exchange, was trading 0.22 lower to 16,960.50 points at 08:29 hours Indian time (UTC+5:30) on Monday, suggesting that Dalal Street will open in the red.

Stick to “low beta stocks”

“As we step into the last week of the calendar year, it is also a week of monthly derivatives expiry,” said Gemstone Equity Research and Advisory Services chief analyst Milan Vaishnav.

“Apart from this, major global markets on holiday will impact the participation in the domestic markets as well due to the lack of any meaningful cues...Monday is likely to see a quiet start for the day. The levels of 17,085 and 17,140 as immediate resistance points for the markets. The supports come in at the16,960 and 16,880 levels.

“...we will also not see any major directional up move unless the NIFTY moves past the 17,150-17,200 (points) zone convincingly. Until the markets move past this zone, it is strongly recommended to keep exposures at modest levels while keeping purchases limited to defensive and low beta stocks,” Vaishnav wrote in a note to clients, published on his firm’s website.

Things to note prior to trade

Indian vaccine manufacturer Bharat Biotech is scouting for global partners to produce and sell an intranasal anti-Covid-19 spray. The Hyderabad-based firm, which sells Covaxin, hopes to produce a billion doses of its BBV154 vaccine in 2022, according to a report in the Business Standard.

The so called non-invasive vaccine is undergoing trials in the country. “The nasal route has excellent potential for vaccination due to the organized immune systems of the nasal mucosa”, according to the company’s website.

Mumbai-based HP Adhesives will start trading on the bourses today. The counter “will be in Trade-for-Trade segment for 10 trading days”, according to a 24 December BSE notice.

Indices ended higher last week

Indian stocks completed weekly gains, closing high on Christmas eve, after concerns over rising Omicron cases worldwide were assuaged by positive macroeconomic data from the US.

The Bombay Stock Exchange’s 30-share Sensitive Index, or Sensex, ended 2.3% higher at 57,147.63 points from its previous close a week ago. The most-traded National Stock Exchange’s Nifty50 index closed at 17,008 points or 2.3% stronger from its close a week ago.

Read more: European banks give Indian infrastructure a $600m-plus boost

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