RTTNews - The Indian market is likely to open lower on Monday amid weak Asian cues after a weak U.S. consumer sentiment data released on Friday highlighted the difficulties facing an economic recovery. On Wall Street, stocks gave up most of their initial gains and eventually ended the session on a mixed note Friday. The Dow ended lower by 0.4 and the S&P 500 index drifted down 0.2%, while the Nasdaq closed up 0.1%.
Oil prices surged to $73.52 a barrel in New York trading on Friday before ending the session off the highs at $72.74 a barrel, up $0.24 on the session.
Back home, the June quarter GDP report due at 11 a.m. today is likely to influence market movement for the day. Addressing more than 100 CEOs at ET's Power Breakfast recently, finance minister Pranab Mukherjee said that the Indian economy had weathered the storm created by the global downturn and exuded confidence that it would grow at around 6% plus in the current financial year.
A report on fiscal deficit for July due today and the results of ABN Amro Purchasing Managers' Index for the month of August which is due tomorrow are likely to offer more cues about the health of the domestic economy.
In a significant event that could have a positive impact on the Indian economy, Prime Minister Manmohan Singh on Saturday turned on the tap to start crude gushing from Cairn India's biggest oil field in Rajasthan. Production from this field will help the country raise its oil output by at least 20 percent based on current production and will reduce the nation's oil import bill by seven percent or 6.8 billion dollars.
Last week, the benchmark indexes, the Sensex and the Nifty, gained almost 4.5% each on the back of renewed fund buying following a revival in monsoon and positive global factors such as U.S. indicators related to housing starts and unemployment. The BSE mid-cap index rallied 5.48% and the small-cap index jumped 7.72% for the wee, outperforming large-caps.
Stocks to Watch
The government has set up a Group of Minister under the Finance Minister to suggest ways for overhauling the fertilizer subsidy policy, reports suggest.
Auto and cement stocks could be in focus ahead of the release of production and sales data for August.
The Supreme Court has deferred hearing on the RIL-RNRL gas dispute case by 50 days to Oct 20.
Larsen & Toubro expects to make a profit of up to Rs.250 crore from its 12% investment in Mahindra Satyam, formerly Satyam Computers.
Britannia, City Union Bank and JK Tyres could be in focus ahead of their Annual General Meetings today.
Maytas Infrastructure reported a net loss of Rs 473.55 crore for FY09 compared to a net profit of Rs 90.74 crore in the previous year.
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