Market Outlook: BSE Sensex, NSE Nifty to open on cautious note ahead of monsoon season

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Mumbai | Updated: July 20, 2015 9:03:29 AM

Traders will be eyeing the monsoon session of Parliament, which begins on Tuesday and will shape the sentient on reforms.

SENSEX AND NIFTYIndian markets are expected to trade higher on Monday tracking positive trend seen in other Asian markets. (PTI)

BSE Sensex and NSE Nifty are expected to open on a cautious note owing to the start of the politically crucial week.

Traders will be eyeing the monsoon session of Parliament, which begins on Tuesday and will shape the sentient on reforms.

Marketmen will be getting some encouragement with Railway Minister Suresh Prabhu’s statement that the Indian economy will register an increased growth by 2-3 percent if the country’s railway network is pumped with a massive investment to boost the connectivity.

The infra stocks will be in action, as Road Transport and Highways Minister Gadkari has said that as a part of efforts to boost road infrastructure for faster connectivity, the Centre is planning to start work on 10 world-class express highways, which will not only reduce travel time but also propel country’s economic growth.

Exports oriented stocks too will be in action, as the government concerned over continuous decline in exports has constituted council comprising members of the Centre and states to promote India’s overseas shipments. Some buzz will be seen in the power sector too, with Power distribution companies (discoms) in the capital asking the power regulator to raise electricity tariff by as much as 20 per cent, citing widening revenue gap of around Rs 28,000 crore.

World Market

Dollar in demand, gold dives to 5 year low

The U.S dollar held broad gains in Asia on Monday as investors looked ahead to higher interest rates from the Federal Reserve, while gold slumped to five-year lows as a lack of global inflation left little to hedge against.

The precious metal ran into a wave of selling in Asia that drove it down 3.9 percent to $1,089.80 an ounce, having already suffered its worst weekly performance since March last week.

Activity was light elsewhere with Japan on holiday and a dearth of major data in the diary, leading to a cautious start for stocks.

Australia’s main index was a fraction softer, while MSCI’s broadest index of Asia-Pacific shares outside Japan was all but flat.

There was better news from China where home prices rose for a second month in a row in June, suggesting government efforts to boost the struggling property sector have started to gain traction.

China stocks seem to have pulled out of their recent nosedive amid a barrage of measures from regulators and buying by brokerages and mutual funds.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.1 percent, while the Shanghai Composite Index eased 0.2 percent.

Greek banks are set to reopen on Monday after a three-week shutdown, while German Chancellor Angela Merkel called for swift aid talks so Athens could also lift withdrawal limits.

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