RTTNews - Strong global cues are likely to help the Indian market open significantly higher on Monday morning. With the major U.S. averages ending up between 1.7% and 1.9% on Friday on the back of better-than-expected existing home sales data and relatively optimistic economic commentary from Federal Reserve Chairman Ben Bernanke, the markets across the Asia-Pacific region are currently trading higher across the board on renewed optimism about the global economy.
Major European markets also closed substantially higher on Friday, with the French CAC 40 index and the German DAX index rising by 3.2% and 2.9%, respectively, while the U.K.'s FTSE 100 index finished up by 2%.
Besides global cues, short covering ahead of the settlement of the August series contracts on Thursday and a revival in FII buying on Friday may help stocks maintain the positive momentum. On a net basis, foreign institutional investors bought shares worth Rs.532.80 crore on Friday, provisional data released by the BSE showed.
The impact of a poor monsoon has already been discounted to a large extent. In a monsoon status update on Friday, the Indian Met Department (IMD) said there has been a significant improvement in monsoon activity over the south peninsula, northwest and northeast India during the week ending August 19.
Meanwhile, India's GDP growth for 2009-10 is likely to be between 6.5 and seven per cent, the CII-Mascon survey carried out for the period April-June of the financial year 2009-10 said. The survey, which examined a total of 77 manufacturing sectors, revealed that one-tenth of them have registered robust growth of over 20% in the first quarter of the current fiscal year. .
Crude oil prices surged upon Friday on hopes of increased energy demand. After ending Thursday's trading down $0.92 at $72.91 a barrel, crude for October delivery rose to as high as $74.72 a barrel before giving back some ground to finish at $73.89 a barrel, up $0.98 on the session. In Asian trading on Monday, the commodity is now trading firm at $74.17 a barrel, up 0.38%.
Last week, the benchmark indexes, the Sensex and the Nifty fell a little over 1% each on concerns poor rains in the country this year could affect economic growth. Concerns surrounding China also weighed on investor sentiment. The BSE mid-cap index ended the week down 0.79%, while the small-cap index rose a modest 0.80%, outperforming large-caps.
In corporate news, Maruti Suzuki India intends to increase its thrust on exports going forward to reduce its dependence on the domestic car market, reports suggest.
JSW Group said on Sunday that its multi-locational Rs 1,900-crore cement plant with an annual production capacity of 5 million tonnes will become operational in the next 18 months.
Metal stocks may rise after base metal prices rose on the London Metal Exchange on Friday on
optimism about the global economy.
ICICI Bank could be in focus on reports the bank is open to acquisitions in the domestic market.
Corporation Bank proposed to raise Rs 100 crore by issue of bonds on a private placement basis.
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