Local stocks are likely to open on a firm note. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 114 points at the opening bell.
The Reserve Bank of India (RBI)'s central board has approved the transfer of Rs 57,128 crore in surplus as dividend to the government for the accounting year 2019-20. The Board reviewed the current economic situation, continued global and domestic challenges and the monetary, regulatory and other measures taken by RBI to mitigate the economic impact of COVID-19 pandemic.
Overseas, Asian stocks were trading mixed on Monday as tensions between the U.S. and China continue to weigh on investor sentiment. Markets in South Korea are closed on Monday for a holiday.
China's central bank on Monday rolled over maturing medium-term loans while keeping borrowing costs unchanged for the fourth straight month. The People's Bank of China (PBOC) said in a statement it was keeping the rate on 700 billion yuan ($100.74 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions steady at 2.95% from previous operations.
Japan was hit by its biggest economic contraction on record in the second quarter as the coronavirus pandemic crushed business and consumer spending. Gross domestic product (GDP) shrank an annualised 27.8% in April-June, government data showed on Monday.
In US, stocks ended on a mixed note on Friday as data on the U.S. economy added to uncertainty over the recovery.
U.S. President Donald Trump issued an executive order Friday forcing China's ByteDance to sell or spin off its U.S. TikTok business within 90 days. In his order, Trump cited credible evidence that ByteDance might take action that threatens to impair the national security of the United States.
Meanwhile, a planned U.S.-China trade deal review initially set for Saturday was reportedly delayed with no new date agreed upon. The delay was due to scheduling conflicts as well as to give time for more Chinese purchases of U.S. exports.
Back home, domestic equity barometers ended with significant losses on Friday, tracking weak global cues. Banks and auto shares corrected while metal and pharma shares bucked trend. The barometer index, the S&P BSE Sensex slumped 433.15 points or 1.13% at 37,877.34. The Nifty 50 index lost 122.05 points or 1.08% at 11,178.40.
Foreign portfolio investors (FPIs) bought shares worth Rs 46.39 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 797.08 crore in the Indian equity market on 14 August, provisional data showed.
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