INDIAN BENCHMARKS Bullish start likely on Dalal Street
The Indian shares are likely to see a gap up start as the global cues look supportive with SGX Nifty trading 30 points higher.
Indian equity benchmarks are poised to witness a positive opening on Tuesday tracking gains across most Asian markets and a bullish finish at Wall Street overnight as investors cheered oil’s surge to a six-month high, bolstering risk taking appetite. Gains in the CNX Nifty Index Futures for May delivery which advanced 0.32 per cent or 25.5 points at 7,905 at 10:23 AM Singapore time also signal that Dalal Street may open lower today.
Shares of GSK Consumer Healthcare, Bharat Forge, Syndicate Bank and United Bank of India will be in focus today as they unveil their March quarter earnings.
However, caution ahead of the results of assembly elections in Assam, Kerala, Tamil Nadu, West Bengal and Puducherry this Thursday and a rebound in wholesale inflation, coupled with forecast of a monsoon delay may weigh on sentiment at Dalal Street, trimming gains.
The Met Department predicted a six-day delay in the onset of monsoon, which was scheduled to hit Kerala on June 1. Snapping a 17-month run of declines, wholesale inflation turned positive in April 2016, coming in at 0.34 per cent, compared to -0.85 per cent in March 2016.
Most Asian stocks rose as crude oil prices climbed to levels seen last October amid hopes that a global supply glut had eased. China’s Shanghai Composite fell while Hang Seng rose and Japan’s Nikkei 225 soared as a weaker yen boosted the appeal of exporter stocks.
US stocks jumped on Monday as commodity producer shares climbed amidst a rally in oil prices after Goldman Sachs Group Inc. increased its price forecast, stressing that the market had moved into a supply deficit earlier than expected.
Sentiment was also boosted after the world’s most renowned investor Warren Buffet disclosed a stake in Apple, boosting the iPhone maker’s stock.
European shares fell on Monday with satellite operator Eutelsat and power station company Drax slumping after broker downgrades..
Major Headlines of the day:
Aurobindo gets tentative approval for dalfampridine tablet
Glenmark loses appeal over patent on Bayer's Finacea
Diamond Power to raise equity fund from a Chinese company
Trend in FII flows: The FIIs were net sellers of Rs -79.84 Cr in the cash segment on Monday while the DIIs were net buyers of Rs 127.91 Cr, as per the provisional figures