Bombay Stock Exchange (BSE)
Bombay Stock Exchange (BSE)

Indian Indices are expected to open lower on Monday due to the Bharatiya Janata Party’s (BJP) loss in some key states elections combined with rapidly rising COVID-19 cases in the country. Global cues are also weak as US and some of the European markets also closed in red on Friday and most of the Asian markets including Hang Seng, Shanghai Composite, Nikkei are also trading with losses. 14,200 might act as an immediate support in the market. Any substantial fall can be considered for entry in good quality scripts. Mohit Nigam, Head, PMS, Hem Securities

Reliance Industries on Friday reported more than doubling of its March quarter net profit as consumer businesses of retail and telecom as well as petrochemicals saw sequential recovery on improved spreads offsetting continued weakness in refining business.

Market movement this week will be influenced by updates on the COVID-19 front, macroeconomic data announcement, quarterly earnings and global trends, said analysts. State election results are unlikely to have any major impact on the markets and the major determining factor will be the rising COVID-19 cases and how governments (both central and states) are going to address this health crisis, they said.

Geojit Financial Services Chief Investment Strategist V K Vijayakumar said, "The election results are unlikely to have any impact on the markets. The news value won't last more than a few hours. The major determining factor will be the rising COVID-19 cases and how governments (both central and states) are going to address this tragic health crisis."

Religare Broking Vice-President (Research) Ajit Mishra said, "We expect volatility to remain high this week, too. First, participants will react to Reliance Industries results which came in after market hours on Friday. Election results of the 5 states will also be the focus.

"Earnings season will also gain pace and some big names like Kotak Mahindra Bank, Hero MotoCorp, Tata Steel, Dabur and HDFC will announce their results along with several others," Mishra said.

Asian markets flat

Shares were mostly lower in Asia in thin trading Monday, with many markets including those in Tokyo and Shanghai closed for holidays.

The declines follow a retreat Friday on Wall Street, where the S&P 500 gave up 0.7 percent but still closed out its best month so far this year.

Markets have mostly climbed in recent weeks as investors remain optimistic that the pandemic is slowly and steadily coming to a close, at least in the United States.

The S&P 500 rose 5.2 percent in April, its best monthly gain since November 2020, when President Joe Biden was elected.

In much of Asia and many other countries, caseloads have surged and vaccination levels remain low.

Hong Kong's Hang Seng lost 1.4 per cent to 28,324.30, and the Kospi in South Korea slipped 0.2 percent to 3,123.47.

Australia's S&P/ASX 200 edged 0.1 percent higher to 7,034.80. Shares fell in Singapore and Taiwan.

US futures were higher, with the contracts for both the Dow industrials and the S&P 500 up 0.3 per cent.

The yield on the 10-year Treasury note was steady at 1.62 percent.

With many markets closed there was little in the way of news to drive trading.

On Friday, the S&P 500 closed at 4,181.17. The index eked out a gain of less than 0.1 percent for the week.

The Dow Jones Industrial Average fell 0.5 percent to 33,874.85 and the Nasdaq lost 0.9 per cent to 13,962.68.

The Russell 2000 index of smaller companies fared worse than the broader market, falling 1.3 percent to 2,266.45.

Investors backed away from technology, financial and communication stocks. Despite the decline, the S&P 500 ended April with a 5.2 percent gain, its best month since November 2020, when President Joe Biden was elected.

It logged a gain of about 28 percent between November and April.

Under Biden, the Dow notched its best first 100 days under a new president since Franklin Delano Roosevelt took office in 1933, according to LPL Financial, with a 9.9 per cent return as of April 29. The Dow delivered a 6.1 percent return during former President Donald Trump's first 100 days in office.

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