Domestic markets are likely to open higher on positive global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 62 points at the opening bell.
Union Ministry of Home Affairs (MHA) issued guidelines for a phased-wise reopening of the economy from 1 June 2020. The new rules allow religious places, shopping malls, hotels and restaurants to open from today, 8 June. The government has decided to allow all activities prohibited earlier in areas outside containment zones in a phased manner. The lockdown was first enforced in March to contain the spread of COVID-19.
Overseas, Asian stocks are trading higher on Monday after a surprise recovery in US employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic. The Australian share market was closed for a holiday.
China's exports in May fell 3.3% compared with a year earlier, but imports plunged 16.7%, customs data showed on Sunday. China posted a trade surplus of $62.93 billion last month, compared with $45.34 billion surplus in April.
In US, stocks ended sharply higher on Friday after jobs report showed surprise jump in payrolls, fall in unemployment rate. Shares of airlines jumped, as the industry added more summer flights.
The Dow Jones Industrial Average jumped 829.16 points, or 3.2%, to 27,110.98, while the S&P 500 rose 81.58 points, or 2.6%, to 3,193.93. The Nasdaq Composite advanced 198.27 points, or 2.1%, to 9,814.08, after hitting a record intraday high of 9,845.69.
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In economic data, the Labor Department said non-farm payroll employment jumped by 2.51 million jobs in May after plummeting by a revised 20.69 million jobs in April. Employment rose sharply in leisure and hospitality, construction, education and health services, and retail trade, according to the Labor Department.
The Labor Department claimed the improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain the spread of the disease.
With the unexpected rebound in employment, the Labor Department said the unemployment rate dropped to 13.3% in May from 14.7% in April.
Back home, domestic shares ended with strong gains on Friday (5 June) as persistent foreign fund inflows and positive cues from global markets boosted sentiment. Investors focused on early signs of some improvement in the economy amid gradual lifting of lockdown measures in India. The barometer S&P BSE Sensex gained 306.54 points or 0.9% at 34,287.24. The Nifty 50 index rallied 113.05 points or 1.13% at 10,142.15. The broad-based rally was led by banks and metal shares.
Foreign portfolio investors (FPIs) bought shares worth Rs 97.61 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 47.29 crore in the Indian equity market on 5 June, provisional data showed.
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