Opneing Bell : Markets likely to make positive start amid positive global cues
Indian equity markets are likely to make a positive start on Monday, tracking positive global market cues following US President Trump's decision to delay the imposition of tariffs on the EU. Additionally, inflows from Foreign Institutional Investors (FIIs) are expected to lend further support to market sentiments. Traders will also be closely watching the final batch of Q4 earnings for further direction.
Some of the key factors to be watched:
India becomes 4th largest economy: NITI Aayog CEO BVR Subrahmanyam said that India has become the fourth largest economy in the world, overtaking Japan. He also added that the overall geopolitical and economic environment is favourable to India.
GST council to meet soon to discuss rate rationalisation: The Goods and Services Tax Council is expected to convene shortly in New Delhi. Discussions will focus on simplifying tax rates and rationalisation. The future of the compensation cess will also be addressed.
Goyal meets EU counterpart for second time in a month on FTA talks: Commerce and Industry Minister Piyush Goyal has met European Commissioner for Trade Maros Sefcovic in Brussels, their second meeting within a month, to discuss the proposed free trade agreement (FTA), currently under negotiation between the two regions.
India's forex reserves dip about $5 billion: The Reserve Bank of India (RBI) reported that India's foreign exchange reserves (forex) dipped $4.888 billion to $685.729 billion in the week ending May 16.
Auto stocks will be in focus: A report said that India's duty concession offer for the auto sector under the free trade agreement (FTA) with the UK is very nuanced with relaxations and quotas linked to engine capacity and vehicle prices.
On the global front: The US markets ended in red on Friday, after President Donald Trump threatened to impose 50 percent tariffs on imports from the European Union beginning June 1st. Asian markets are trading mixed on Monday, as sentiments were lifted by delay in tariffs on European Union by the U.S. administration, while persistent uncertainty over trade talks between America and China capped up the move.
Back home, Indian equity benchmarks witnessed some respite on the final trading day of the week, gaining nearly a percent, propelled by buying in market heavyweights Eternal, Power Grid Corporation and ITC. Finally, the BSE Sensex rose 769.09 points or 0.95% to 81,721.08 and the CNX Nifty was up by 243.45 points or 0.99% to 24,853.15.
Some of the important factors in today’s trade:
India to surpass China in oil demand growth over next decade: Moody's Ratings has said that China drove global oil demand growth over the last decade, but now India is poised to take the lead in demand growth over the next decade.
Rupee recovers sharply against US dollar: Indian rupee snapped its three-day losing streak and settled for the day higher against the US dollar, on a sharp fall in the dollar index and surge in domestic equities, amid rise in risk appetite for riskier assets.
Heavy FII selling: The provisional data from the National Stock Exchange showed foreign portfolio investors turned net sellers of Indian equities after a day of buying on Thursday, as they offload stocks worth Rs 5,045.36 crore.
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