Indian Shares Seen Opening Higher On Stimulus Hopes

(RTTNews) – Indian shares look set to open higher on Monday, with positive global cues on the back of stimulus hopes and earnings optimism likely to help underpin investor sentiment.

There is some cheer on the economic front as data showed that India’s exports grew by an annual 5.27 percent in September on the back of a jump in iron ore trade, farm products and pharmaceuticals.

Industrial output data for August and CPI inflation figures for September will be released later today, while WPI inflation data for September will be out on Wednesday.

Reports on the balance of trade data for September and foreign exchange reserves for week ended October 9 will be released on Thursday and Friday, respectively.

Financials could be in focus today ahead of the Supreme Court hearing on loan moratorium issue. The Reserve Bank of India has filed an affidavit before the apex court saying that a loan moratorium exceeding six months could impact credit behavior of borrowers and increase the risks of delinquencies post resumption of scheduled payments.

Asian markets are rising this morning while the yuan fell as much as 0.7 percent against the dollar after the People’s Bank of China has scrapped a requirement for banks to hold a reserve of yuan forward contracts.

Biden’s lead in national polls also helped drive surging yuan gains. Gold eased on dollar strength while oil prices dropped for a second straight session after a ten-day oil workers’ strike in Norway was resolved late last week.

U.S. stocks rose on Friday to end the session at their best closing levels in over a month after President Trump said he would like to see a “bigger stimulus package than either the Democrats or Republicans are offering.”

Trump’s comments came amid reports that the White House was planning to offer a $1.8 trillion package, which is up from the administration’s previous $1.6 trillion proposal but still below the $2.2 trillion bill passed by House Democrats.

The Dow Jones Industrial Average gained 0.6 percent, the tech-heavy Nasdaq Composite climbed 1.4 percent and the S&P 500 added 0.9 percent.

European markets gained ground on Friday as minutes of the European Central Bank signaled further stimulus in the not too distance future and the U.K. government expanded its job support scheme for another six months.

The pan European Stoxx 600 added 0.6 percent. The German DAX inched up 0.1 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both gained 0.7 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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