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Indian markets tumbled 1.5 percent to more than one-week closing lows on Friday, dragged by losses across sectors barring IT stocks. Today, the markets are likely to make negative start as global sentiment remains cautious amid rising Omircon coronavirus cases worldwide. India's Omicron COVID count rose to 151 on Sunday after Maharashtra reported six more cases. Traders will be concerned with continues foreign fun outflow. Foreign portfolio investors (FPIs) have pulled out Rs 17,696 crore from the Indian markets in December so far amid uncertainty due to a new coronavirus strain, Omicron, and expectations of faster tapering by the US Federal Reserve. There will be some cautiousness as a private report estimated 6.3 per cent real GDP expansion in FY23, among the lowest within the analyst community and stated that there is uncertainty on the growth trajectory. Also, RBI data showed declining for the third consecutive week, India’s forex reserves dipped by $77 million to reach $635.828 billion for the week ended December 10. However, some respite may come later in the day with a report that after staging a strong recovery from COVID-induced slowdown in 2021, India's exports are likely to extend the growth story to the New Year also on increased demand in the global markets, boost in domestic manufacturing due to production-linked incentive schemes and implementation of some interim trade pacts. Some support may come with report that aided by revival of economic activities and better compliance, the Union government’s advance direct tax collections from companies, LLPs and individuals rose 50% on year to about Rs 2.1 lakh crore in Q3FY22, even as a favouarble base effect waned. Meanwhile, Commerce Minister Piyush Goyal has exuded confidence that negotiations for a free trade agreement between India and the UK would be launched next month and with Canada by March-April. There will be some buzz in the textile industry stocks as Trade body Cotton Association of India (CAI) estimated cotton arrival for the month of November at 77 lakh bales. Sugar stocks will be in focus as Food Secretary Sudhanshu Pandey ruled out hike in the minimum selling price of sugar from current Rs 31 per kg as domestic rates are higher and expressed confidence that exports will touch 50-60 lakh tonnes in the current marketing year starting October. Coal industry stocks will be in limelight with a private report that India's coal import registered a decline of 26.8 per cent to 15.75 million tonnes (MT) in October over the same month a year ago. Besides, Shares of Shriram Properties will list on the stock exchanges today.

The US markets ended lower on Friday amid rising worries about the economic impact of the Omicron variant of COVID-19. Asian markets are trading in red on Monday as surging Omicron cases triggered tighter restrictions in Europe and threatened to drag on the global economy into the new year. 

Back home, Friday turned out to be a dismal day of trade for Indian equity benchmarks with frontline gauges breaching their crucial 17,000 (Nifty) and 57,050 (Sensex) levels. After making cautious start, Indian equities extended their decline in morning deals, amid weak global cues coupled with uncertainty surrounding the Omicron variant. India reported 14 fresh Omicron cases on Thursday, taking the tally of patients contracting the highly infections coronavirus variant in the country to 87. Traders remain concerned with the Centre for Monitoring Indian Economy’s statement that the consumer sentiment index in November is far below the pre-pandemic levels though better than November last year, suggesting the economic recovery is excruciatingly slow and uninspiring. Besides, continued foreign fund outflow dented sentiments in the markets. As per provisional data available on the NSE, Foreign institutional investors (FIIs) net sold shares worth Rs 1,468.71 crore. Selling got accelerated in second half of trade, as some anxiety remained among traders with a private report stating that India's growth recovery has been led by capital expenditure push by the government so far, but fiscal constraints might prove to be a challenge going forward in terms of driving investments. Traders failed to get any sense of relief with a private report that advance tax collections in the third quarter of the fiscal year almost doubled from the year-earlier period, underscoring hopes of a sustained economic recovery amid the threat from the Omicron Covid-19 variant. Market participants also overlooked the Ministry of Commerce and Industry in its latest report has said that India registered the highest ever annual FDI Inflow of $ 81.97 billion (provisional) in the financial year 2020-21. The Ministry of Commerce and Industry noted that FDI inflow in the last 7 financial years (2014-21) is $ 440.27 billion, which is nearly 58% of the total FDI inflow in last 21 financial years (2000-21: $ 763.83 billion). Finally, the BSE Sensex fell 889.40 points or 1.54% to 57,011.74 and the CNX Nifty was down by 263.20 points or 1.53% to 16,985.20.

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