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Why the Nifty, BSE Sensex Might Open Flat to Lower Today

Published 12-01-2021, 08:50 am
Updated 12-01-2021, 08:53 am
© Reuters.

By Aditya Raghunath

Investing.com -- After the Nifty and BSE Sensex closed at record highs on January 11, today might see both Indian indices open flat to lower on domestic and global cues. The finance sector, especially the public sector banks, might see stress after the RBI (Reserve Bank of India) warned in its Financial Stability Report that gross net performing assets could rise up to 14.8% under a severe stress scenario by September 2021. The number was 7.5% in September 2020.

All three major US indices fell on Monday, giving up a little of last week’s record highs. There is concern in the US that the rising number of COVID-19 cases and hospitalizations will add pressure to an already stressed economy. Incoming President Joe Biden’s new stimulus plan can’t come soon enough. 

Crude oil prices have hit another plateau after concerns over demand as a fresh round of COVID-19 cases have surged across the world. Crude oil is trading at $52.21 at the time of this report.

Asia is trading mixed with Nikkei 225 up 0.17% while KOSPI 50 is down 0.69%. Nifty 50 Futures are trading lower at -0.1% which usually signals a slow opening for India.

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