The markets may see a gap up opening on account of the positive global cues as President Barack Obama announced a last-minute deal to raise the U.S. borrowing limit and avoid a catastrophic default.The Asian markets are also riding high on this positive global development. The SGX Nifty is up 61 points at 5,552.
The first phase of the two-stage plan announced by the President called for about $1 trillion in spending cuts over the next decade. The next $1.5 trillion in savings must be found by a special congressional committee by the end of December.
In the Asian markets,Nikkei average surged as much as 2%, climbing back above 10,000 for the first time in three days on hort-covering and futures-led buying.The other major gainers are Hang Seng, Jakarta Composite and Seoul Composite adding over 1% each.
Market experts believe that movement of Indian stocks this week will hugely depend on the reaction of global markets to the way the US handles its Tuesday's deadline to raise $14.3 trillion debt limit and a word on its possible downgrade by credit rating agencies.
Besides,the Monsoon session of the Indian Parliament will commence from today amid a string of controversies facing the government. Also, The Group of Ministers on coal are likely to meet tomorrow to discuss six coal projects, which have been stalled due to pending environmental approvals, among others. In the meeting six coal projects allotted to firms like ADAG, Essar and the Aditya Birla Group for fuelling their thermal power plants are likely to come up for deliberation.
Some of the stocks to watch out are Sesa Goa which has denied wrongdoing in Karnataka mining scam, GVK Power and Infrastructure, as the company finalises a deal to buy coal mines operated by Australia's Hancock Prospecting. Reliance Power will see some activity as it has started the process of arranging funds for its 4,000 MW ultra mega power project at Tilaiya in Jharkhand.
Some of the results expected for the day are Glaxosmithkline, Pfizer, Havells India, Indraprastha Gas, Shree Cement , Sun TV Network and Triveni Engineering