Indian equities are poised for a subdued opening on Monday as investors await the exit polls and general election results. Voting for the 18th Lok Sabha concludes on June 1, and exit poll results are scheduled for release post 6:30 PM on the same day. The official parliamentary election results will be announced on June 4.
With the earnings season nearing its end, attention will pivot to imminent reports on monthly automotive sales, GDP figures for the March quarter, April's infrastructure output, and fiscal deficit data for March-April 2024.
Asian markets showed modest gains this morning, with the dollar weakening slightly and oil prices stabilizing after another week of losses driven by the Federal Reserve's cautious approach to rate cuts. Gold remained relatively unchanged despite experiencing its worst week since September.
Geopolitical tensions have heightened following Israel's airstrike in Gaza on Sunday, which resulted in at least 35 fatalities and numerous injuries.
In the U.S., stocks rose on Friday, recovering from the severe losses of the previous session. New data suggested an improved consumer outlook on inflation. Key U.S. manufactured capital goods orders rebounded more than anticipated in April, while consumer sentiment declined slightly less than initially estimated in May, and consumer inflation expectations moderated, according to separate datasets.
The Nasdaq Composite Index, known for its technology-heavy listings, surged by 1.1%, reaching a new record closing high and marking its fifth consecutive week of gains. The S&P 500 increased by 0.7%, while the Dow Jones Industrial Average closed flat but with a slight positive bias.
European markets, however, ended in the negative territory on Friday as renewed concerns over interest rates and escalating tensions between China and Taiwan weighed on investor sentiment. The pan-European STOXX 600 index declined by 0.2%. Germany's DAX index posted marginal gains, while France's CAC 40 saw a slight dip, and the U.K.'s FTSE 100 fell by 0.3%.