Market may continue to rally
The Indian market extended its winning streak for the fourth day in a row. Also the market witnessed a biggest weekly gain in the past three months owing to a slew of positive news and strong earnings from index companies. The market was boosted on account of encouraging monsoon forecast from Skymet, some upbeat results from India Inc. and assertive comments from Prime Minister Narendra Modi on economic reforms. For the week, the Sensex and the Nifty closed higher by 1351.70 points (5.34%) and 406.95 points (5.25%) at 26,653.60 and 8156.65, respectively. The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices moving up nearly 3% and 1.34%, respectively.
U.S. stocks closed higher Friday, posting a solid week of gains, after Federal Reserve chair Janet Yellen said that an interest rate hike is on the cards in the coming months if the economy and labour market continue to improve. The S&P 500 stock index rose 0.4% and booked a 2.3% weekly gain. The Dow Jones Industrial Average gained 31.74 points, or 0.3%, to 17,873.22, recording a 2.1% weekly gain. Meanwhile, the Nasdaq Composite advanced 44.93 points, or 0.7%, to 4,933.50, ending the week 3.4% higher. U.S. markets will be closed on Monday for the Memorial Day holiday.
European stocks closed higher on Friday, as traders awaited a speech by Federal Reserve Chair Janet Yellen that could indicate whether an interest rate rise is imminent. The Stoxx Europe 600 rose 0.2%; taking its advance to 3.4% for the week. Germany’s DAX 30 rose 0.1% at 10,286.31, and France’s CAC 40 inched 0.1% higher to 4,514.74. The U.K.’s FTSE 100 closed 0.1% higher at 6,270.79. U.K. stock markets will be closed on Monday for the late May bank holiday.
Asian markets opened in the mix Monday. Japan's benchmark Nikkei 225 index was up 0.83% as the yen extended its slump against the dollar. Australia’s S&P/ASX 200 Index fluctuated amid below-average trading volumes while the S&P/NZX 50 Index in New Zealand climbed 0.27%. South Korea’s Kospi index slid 0.13%. Chinese markets erased initial losses, and the Shanghai composite traded flat.
On the domestic front, A SGX Nifty 50 index future for May series is trading up by 46 points at 8,216. Indian markets are likely to open in green. Investors will be keeping an eye on APL Apollo Tubes, Atul Auto, Aurobindo Pharma, Bajaj Electricals, Borosil Glass, D-Link (India), Godfrey Phillips, Hindustan Copper, Jagran Prakashan, JBF Industries, Jindal Poly, Nitin Fire, Rajesh Exports, Rolta, Shakti Pumps, And Tata Motors, results of which are due for release Monday.