Sops battle global demons at Indian equity markets

The Indian markets on Monday opened with a gain of close to 2% on the back of sops announced by the government late on Friday evening, however, the weak global cues dragged the gains back.

The 30-share index of BSE, Sensex opened with a gain of 662.79 (1.8%) in the morning. However, immediately after it, taking cues from the global markets, Sensex witnessed a sell-off and was trading at 36,897.82 points, up 0.54% from Friday’s close.

In the pre-open trade, the Sensex had gained 900 points (2.5%), as well.

Similarly, broader index NSE Nifty opened with a gain of 171 points (1.6%), testing the 11,000-mark. However, the global sell-off impacted this index as well, and was 10,883.05 points, up 0.50% at the time of filing this copy.

"The opening market moves, while reflecting the sops, may be negated by global cues," said Anubhav Srivastava of Infinity Alternatives.

All the far eastern indices, except the ones from the Phillipines, have witnessed bloodbath on Monday, on back of global slow-down. “There is a slowdown and G7 are talking about joint efforts. Also, on Friday the US yield curve was all over the place ending inverted again,” said Srivastava.