The Indian market is set for a mildly weak start as political uncertainty in US left global investors jittery at a time when the economy was showing signs of faltering.
However, the Indian market is likely to outperform global market on positive outcome of the Goods and Services Tax (GST) Council meeting which was held on Saturday.
At 07:23 AM, SGX Nifty, an early indicator of the Nifty 50's trend in India, was down 0.08 percent at 10,751, indicating a weak opening for the Indian market.
The Indian market will be closed on Tuesday on the occasion of Christmas.
Here's what you should know before the opening bell Asia: Asian stocks started in subdued fashion on Monday as investors fretted that political instability in the United States was leaving the country rudderless at a time when the global economy was showing signs of faltering. Moves were limited by a holiday in Japan while many bourses are set to close early for Christmas. After opening lower, E-Mini futures for the S&P 500 turned flat. Oil: Oil prices dipped on Monday ahead of the Christmas holiday break, adding to last week’s steep losses on concerns about a global oversupply. International benchmark Brent crude futures fell 27 cents, or 0.5 percent, to $53.55 a barrel at 0106 GMT. Brent touched $52.79 on Friday, its lowest since September 2017. US West Texas Intermediate (WTI) crude futures eased 8 cents, or 0.1 percent, to $45.51 a barrel. WTI hit its lowest since July 2017 on Friday at $45.13. Political uncertainty in US: US President Donald Trump’s budget director and chief of staff on Sunday said the partial US government shutdown could continue into January, when the new Congress convenes and Democrats take over the House of Representatives. Trump on Sunday said he was replacing Defense Secretary Jim Mattis two months early, a move officials said was driven by the president’s anger at Mattis’ resignation letter and its rebuke of his foreign policy. Rupee: The rupee closed at 70.14 against the US dollar on Friday. Market close on Friday: Indian market took a sharp knock on Friday, tracking weak global cues, as the second consecutive day of fall turned benchmark equities negative for the week. The 30-share BSE Sensex nosedived 690 points to close at 35,742, while the NSE Nifty slumped 198 points to 10,754. Broader markets also fell sharply with the Nifty Midap Index declining by 284 points to 17,704 and Nifty Bank 405 points to 26,870. Only four Nifty stocks managed to close with gains. US Markets: The Nasdaq has fallen nearly 22 percent from its Aug. 29 high and into bear territory, while the S&P 500 was on track for its worst December since the Great Depression. At the same time 10-year Treasury yields were near their lowest since August at 2.79 percent, having fallen over 40 basis points in just six weeks. GST Council Meet: The GST Council on Saturday cut rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks.The annual revenue implication of the rate cuts would be Rs 5,500 crore, Finance Minister Arun Jaitley said. The council rationalised the 28 percent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab. GST Council on construction of flats: The GST Council is likely to consider lowering GST on under-construction flats and houses to 5 per cent in its meeting next month, an official said. Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. Global currencies: The Japanese yen and the Swiss franc rose on safe-haven buying on Monday as investors grappled with political instability in the United States and fears of a global economic slowdown. Trading volumes were thinning out with most global markets set to shut for Christmas, while Japan was closed on Monday for a holiday. FIIs and DIIs: Foreign Institutional Investors (FIIs) bought shares of Rs 134.14 crore while Domestic Institutional Investors (DII) sold Rs 488.55 crore shares in the market on December 21, as per the provisional data on the NSE. (With inputs from agencies)