Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 139 points at the opening bell. The market will react to Gross Domestic Product (GDP) data released after market hours on Friday.
India's economy grew at 3.1% in Q4 March 2020. The gross domestic product (GDP) had expanded by 5.7% in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO). In 2019-20, the Indian economy grew by 4.2% against 6.1% expansion recorded in 2018-19. The government has also revised down the GDP growth in Q1, Q2, and Q3 to 5.2%, 4.4%, and 4.1% respectively.
Estimates will undergo revision as statutory data submission deadlines were extended by government in view of Covid-19 outbreak, Ministry of Statistics and Programme Implementation (MOSPI) said in a press note.
Meanwhile, the growth rate of Index of Eight Core Industries for April 2020 declined by 38.1% (provisional) compared to decline of 9% (provisional) in March 2020.
Malls, hotels, restaurants and places of worship can open on June 8 except in areas with the most number of coronavirus cases, the government said on Saturday, extending the nationwide lockdown till June 30 with a phased plan to unlock India.
All activities banned earlier will open up in phases, the home ministry said in new guidelines on Saturday, a day before the current phase of lockdown ends.
Overseas, Asian stocks were trading higher as a Chinese data released over the weekend showed the country's factory activity expanding in May.
U.S. President Donald Trump announced Friday he would be taking action to eliminate special treatment for Hong Kong, following China's approval of a controversial national security bill for the city.
China's factory activity grew at a slower pace in May. The official manufacturing Purchasing Manager's Index (PMI) eased to 50.6 in May from 50.8 in April, National Bureau of Statistics data showed on Sunday, but held above the 50-point mark that separates expansion from contraction on a monthly basis.
Meanwhile, a private survey also showed China's manufacturing activity expanding in May. The Caixin/Markit manufacturing PMI for May came in at 50.7 as compared to the April reading of 49.4.
Japan's factory activity shrank at the fastest pace since March 2009 in May. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 38.4 from 41.9 in the previous month.
South Korea's manufacturing activity shrank at the sharpest pace in more than a decade in May. The IHS Markit purchasing managers' index (PMI) edged down to 41.3 in May, below 41.6 in April.
In US, stock indexes ended mostly higher Friday after a news conference from President Donald Trump on China turned out to be not as disruptive to trade and finance as had been feared.
Fed chair Powell, in a webcast event, said the Fed has plenty of room to continue expanding its balance sheet and again pushed back on the idea of pushing interest rates into negative territory.
On the U.S. economic front, the May Chicago Purchasing Managers Index fell to 32.3 in May from 35.4 in April. A final May reading on the University of Michigan's consumer confidence index rose to 72.3 from an April level of 71.8.
Back home, key market barometers ended with modest gains on Friday. The buying was supported by hope of further opening up of the economy. The barometer S&P BSE Sensex surged 223.51 points or 0.69% at 32,424.10. The Nifty 50 index gained 90.20 points or 0.95% at 9,580.30.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,460.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 967.43 crore in the Indian equity market on 29 May, provisional data showed.
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