Market likely to open flat; GDP data eyed

The Indian market extended its winning streak for the fifth consecutive day on Monday after earnings of blue chips companies beat street estimates, boosting hopes that the economy was recovering with raising optimism over India's economic prospects, with investors betting that above-average monsoon rainfalls would support rural demand. The Sensex ended higher by 72 points or 0.27% at 26,725.60; and the Nifty ended up by 21.85 points or 0.27% at 8,178.50, highest closing level since October, 2015. The broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices gained 0.4% each.

U.S. stock markets were closed for the Memorial Day holiday on Monday, while London markets were closed for a bank holiday. European markets closed higher on Monday as investors lost their fear of higher US interest rates, focusing instead on signs of economic recovery. The Stoxx Europe 600 was barely positive at 350.14. Germany’s DAX 30 index rose 0.5% to 10,333.23, while the French CAC 40 index rose 0.3% and the FTSE MIB Italy index rose 0.6%.

Oil prices regained some ground as the dollar fell back from its highs, with Brent rising 12 cents to USD 49.44 while WTI edged 2 cents higher to USD 49.35.

Asian stocks extended gains on Tuesday, as markets recovered from initial loss amid optimism that the global economy is strong enough to withstand a potentially imminent boost to U.S. borrowing costs. Japan's benchmark Nikkei 225 index gained 0.48% after fluctuating at the start of the session, and Australia’s S&P/ASX 200 Index is down 0.44%, trimming its third straight monthly climb to 2.7%. The Kospi index in Seoul rose 0.41%, while New Zealand’s S&P/NZX 50 Index added 0.24% to embark upon a record high. Chinese markets traded higher, with the Shanghai composite advancing 2.21% and Hong Kong's Hang Seng Index is up 0.94%.

On the domestic front, A SGX Nifty 50 index future for May series is trading up by 14 points at 8,209. Indian markets are likely to open in green. Investors and traders must keep an eye on the GDP data for fourth quarter and FY16 to be released Tuesday.