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Indian markets could open flat to mildly higher, in line with Asian markets that are largely up today. US markets were shut on Monday due to the Memorial day holiday..…- HDFC Securities

European stocks were headed for a fourth straight monthly gain on May 31, but May was set to end on a weaker note after inflation picked up in Germany and data was soft out of China and Japan. Market closures due to holidays in London and the U.S. also kept many investors on the sidelines

China's factory activity expanded at the fastest pace this year in May as domestic and export demand picked up, though sharp rises in raw material prices and strains in supply chains crimped some companies' production, a business survey showed on Tuesday. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9

On Monday, the Organization for Economic Cooperation and Development lifted its global economic output forecasts for 2021 thanks to vaccines and U.S. fiscal stimulus. Its U.S. growth forecast was lifted to 6.9% from 6.5%, while growth for the eurozone was boosted to 4.3% from 3.9% and China growth was raised to 8.5% from 7.8%.

South Korea exports logged their sharpest expansion in 32 years in May, marking another robust month of shipments fueled by stronger consumer demand globally as many economies start to reopen. Surging chip and car shipments helped power a 45.6% surge in South Korea’s exports from a year earlier.

The data released by the Indian government shows that the GDP in FY21 has contracted, for the first time since 1980-81. A contraction of 7.3 percent was reported in the financial year 2020-21. In the fourth quarter of FY21, the GDP has grown by 1.6 percent (vs forecast 0.9%). In the year-ago quarter, the GDP grew by 3 percent while in the previous quarter, GDP growth was 0.5 percent.

India’s fiscal deficit for 2020-21 was at 9.3 per cent of the gross domestic product (GDP), lower than 9.5 per cent estimated by the Finance Ministry in the revised Budget estimates. The revenue deficit at the end of the fiscal was 7.42 per cent.

The output of eight core sectors jumped by 56.1 per cent in April mainly due to a low base effect and uptick in production of natural gas, refinery products, steel, cement and electricity.

Asian stocks were steady early Tuesday as traders await gauges of manufacturing activity and key American jobs data later in the week to help assess the economic outlook.

Indian benchmark equity indices continued their uptrend on May 31 with Nifty hitting fresh record high ahead of the Q4 GDP data due for release in the evening. At close, the Nifty was up 147.10 points or 0.95% at 15582.80.

Nifty rose for the seventh consecutive session reaching and closing at fresh record highs. It has closed May with a 6.5% gain almost matching the February gains. The contribution to this rise was broad-based on May 31. Overall advance decline ratio was also mildly positive. 15634 is the next resistance for the Nifty while 15470 is the support.

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