Sensex, Nifty Seen Opening Little Changed

Indian shares look set to open largely unchanged on Monday as the Modi government prepares to unveil a stimulus package with measures to encourage domestic investments and provide more money for rural infrastructure and affordable housing.

Media reports suggest that Chief Economic Advisor Arvind Subramanian has been tasked with preparing the details of the pressure points facing the economy and the probable remedies yet keeping inflation and fiscal deficit under control.

Besides, earnings expectations, the expiry of derivative contracts and economic data on core sector output and fiscal deficit may influence trading sentiment as the week progresses.

Benchmark indexes Sensex and the Nifty fell over 1 percent last week and the rupee weakened by 72 paise to close at 64.80 per dollar as a slew of factors such as dismal macroeconomic readings, fiscal slippage worries, renewed geopolitical tensions and the Federal Reserve’s hawkish policy statement kept foreign portfolio investors on a selling spree.

Asian stocks are trading mixed this morning following a week of heated rhetoric between the leaders of the U.S. and North Korea.

German Chancellor Angela Merkel won a fourth term in office on Sunday, but her victory was clouded by the entry into parliament of the far-right, anti-Muslim, anti-European Union party — the Alternative for Germany.

Elsewhere, the New Zealand election saw Prime Minister Bill English’s National Party win the most votes, but it could take weeks for the country to form a new government.

The pound edged up after slipping late last week as Moody’s downgraded Britain’s sovereign credit rating and Prime Minister’s highly-anticipated Brexit speech offered few details about how Britain might retain preferential access to Europe’s single market.

The dollar stood tall against the yen and gold prices firmed up while oil extended Friday’s gains after oil producers said their commitment to cut production and clear a global cut is working.

U.S. stocks ended narrowly mixed on Friday as fresh tensions between the U.S. and North Korea sent bond yields lower and Sen. John McCain said he wouldn’t support the latest Republican effort to roll back the Affordable Care Act.

European markets also ended Friday’s session mixed as geopolitical worries overshadowed upbeat business-activity data from the euro zone.

The pan-European Stoxx Europe 600 index closed 0.1 percent higher, France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 added 0.6 percent while…

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