Asian markets were trading mixed on Monday following a jump in crude oil prices and decline in US dollar. Indian markets were trading higher in the morning trades with the S&P BSE Sensex up 124 points or 0.38% at 35,050. Market breadth was positive and out of a total of 2,160 shares traded on the Bombay Stock Exchange, 1,190 advanced while 860 declined and 110 remained unchanged. The Nifty 50 was trading up 43 points or 0.40% at 10,661.
Indian government bonds were trading higher with yields on 10-year government bonds at 7.63% in morning trades against the previous close of 7.72%. The Reserve Bank of India said last week that it would buy Rs 100 billion ($1.5 billion) of securities with maturities ranging from 2020 to 2033 maturities on May 17. The Indian rupee was trading weak against the US dollar at Rs 67.0950, from its previous close of Rs 65.3975.
US stocks closed higher on Friday after the US jobless rate hit 11-month low. Stocks were also buoyed by gains in technology stocks. European stocks also ended higher taking cues from US markets.
The Week Ahead
The markets are likely to remain volatile during the week ahead of the Karnataka assembly polls on Saturday. Globally, the earning results season continue to remain in focus.
The Bank of England will announce its monetary policy review where it is expected to keep interest rates on hold. President Donald Trump is poised to decide on the Iran Nuclear agreement by May 12. Tensions between Iran and Saudi Arabia, and Iran and Israel are at their highest levels in decades.
In India, investors will look forward to fiscal deficit data, industrial production data and consumer price index (CPI) data to be released during this week. The week ahead also has important readings on the health of the Chinese economy, and hence global demand, as well as the latest data on US consumer price inflation.