Market Likely To Open In Green

Indian equities indices extended gains for the second straight week led by auto, banking, consumer durable and healthcare stocks after the government defended its reforms approach and on continued hopes the Reserve Bank would lower interest rates in June. During the last week, the Sensex closed 0.81%, or 218.61 points, higher at 27,249.42, while the Nifty surged 0.86%, or 70.85 points, to 8,262.35. Buying activity was also extended to small and midcap sectors. The BSE smallcap index surged 3.2% and Midcap index rose by 1.95%. Both these indices outperformed the Sensex.

NSE will auction on Monday investment limits for foreign investors to buy government debt securities worth Rs.2,684 crore. This is the highest investment limit on offer for overseas investors in more than half-a-dozen auctions conducted since December.

India has managed to contain its fiscal deficit at 4% of its gross domestic product (GDP) bettering its target of 4.1% of GDP, the finance ministry said on Sunday. Fiscal deficit stood at Rs 5,01,880 crore at the end of 2014-15, 98% of the revised budget estimates. As a proportion of GDP, it stood at 4% against 4.4% in 2013-14.

European stock markets erased gains and ended lower after euro rose following weak U.S. data. The FTSE 100 shed 0.2% to close at 6,960.49, largely as shares of commodity producers were shoved lower. The FTSE 100 for the week fell 1.2%, its second weekly loss in three. In Paris, the CAC 40 dipped 0.71% to 4,993.82, while Frankfurt’s DAX 30 lost 0.98% to 11,447.03 points compared with the close on Thursday, when many traders were away for a public holiday in both European capitals.

U.S. stocks ended the day's choppy session marginally higher Friday with the main indexes eking out weekly gains. Consumer sentiment and weak industrial data in April squelched any lingering optimism from Thursday's rally.  The S&P 500 closed 1.63 points, or 0.1%, higher at 2,122.73 and weekly gained 0.3%. The Dow Jones Industrial Average added 20.32 points, or 0.1%, to 18,272.56, rising 0.5% over the week. The Nasdaq Composite ended the session 2.5 points lower at 5,048.29, but managed a 0.9% gain over the week.

WTI crude fell 19 cents to close at USD 59.69 a barrel in New York. U.S. oil ended last week at USD 59.39 and the week before at USD 59.15. Brent crude for July delivery fell 11 cents to close at USD 66.81 in London. The June Brent contract expired Thursday at USD 66.59.

Stock markets in Japan led gains in the region early Monday as March machinery orders due before the market open beat expectations, while other bourses tracked a muted finish on Wall Street Friday. Machinery orders in Japan rose 2.6% on-year in March, rebounding from a 0.4% slip in February. M-o-M basis, core orders, which are usually regarded as an indicator of capital spending in the coming six to nine months, grew 2.9%, better than the street estimates of 1.8%.

Japan’s Topix index added 0.65%. Australia’s S&P/ASX 200 Index declined 0.74%. South Korea’s Kospi index was little changed. New Zealand’s NZX 50 Index gained 0.22%. The Hang Seng index declined 0.5% and the Shanghai Composite Index fall 0.4%.

SGX Nifty is marginally by 5 points. Indian market is likely to open in green. Asian Paints, HSIL, Mahindra Holidays, M.M.Forgings, Nrb Bearings, Omkar Speciality Chemicals, Sterlite Technologies, Vinyl Chemicals, Styrolution ABS (India), Somany Ceramics and Wheels India would be reporting fourth quarter earnings today.