Markets are likely to open higher, amid firm global cues, with rate sensitive shares likely to extend gains post the surprising rate cut by the RBI last week.
At 8:40AM, the early indicator SGX Nifty was up 54 points at 8,574.
On the global front, the outcome of the European Central Bank’s meeting this week will be in focus especially in the backdrop of the shocking annoucment by the Swiss National Bank to lift the cap on its currency.
Further, the International Monetary Fund is scheduled to release its latest economic forecasts on Tuesday.
The Bank of Japan’s outlook on the economy at its meeting on Wednesday will also be keenly watched.
Asian markets were trading mixed with the Nikkei up 0.6% and Straits Times gaining 0.3%. However, Hang Seng was down 0.5% and Shanghai Composite was down nearly 5%.
US stocks surged over 1% on Friday, snapping a five-day losing streak, following a recovery in energy stocks. Energy shares recovered from their recent lows after the International Energy Agency forecast that the downtrend in US crude oil prices would end soon.
The Dow Jones jumped 191 points or 1.1% to end at 17,512, S&P 500 rose 27 points at 1.3% at 2,019 while the tech laden Nasdaq closed 64 points or 1.4% at 4,634.
Stocks in focus
Axis Bank may extend post its robust third quarter earnings announced last week.
Reliance Industries could post marginal gains on the back of brokerage upgrades post its third quarter earnings. RIL posted standalone net profit of Rs 5,085 crore, in line with Street estimates, helped by other income, even as revenues at Rs 80,196 crore fell much short of Bloomberg consensus estimates of Rs 85,119 crore.
Oil marketing companies will be in focus after the cut in petrol and diesel prices.
Wipro may gain post its better-than-expected third quarter earnings on the back of dollar revenue growth.
M&M Financials may see some correction after gross NPLs surged to 5-year high at 7% while net profit was down nearly 17%. Several brokerages have also downgraded the stock on poor results.
Symphony may gain on the back of encouraging third quarter earnings with net profit growth of 45% led by volume growth.
Oberoi Realty may gain on the back of good third quarter earnings led by improvement in margins.
Unichem Labs is likely to see some pressure on the back of weak third quarter earnings with net profit slumping 97%.