(RTTNews.com) – Nifty futures on the Singapore Exchange are trading higher, indicating a positive open for local markets despite mixed global cues. Having said that, traders may consider taking some profits off the table at higher levels ahead of the cabinet and government formation. BJP’s prime ministerial nominee Narendra Modi will meet President Pranab Mukherjee today to stake claim to form the government after his election as the leader of the BJP and NDA parliamentary coalition.
Meanwhile, a Morgan Stanley report said that the election results could be an “inflexion point” for India’s story and the country’s gross domestic product (GDP) will likely accelerate to 6.8 percent over the next two years.
The benchmark indexes Sensex and Nifty rose about a percent each on Monday, extending last week’s rally, on strong capital inflows after people of India voted for a stable government with full majority for the first time in 30 years.
Foreign institutional investors (FIIs) remained net buyers in the cash segment and bought shares worth Rs. 1,350.04 crore yesterday, while domestic financial institutions offloaded shares to the extent of Rs. 348.49 crore, provisional data showed.
<b>Asian Markets </b>
Asian stocks are swinging between gains and losses following mixed cues from the U.S. and European markets. The yen held near a 3 1/2-month high against the dollar and the euro, reflecting a dip in U.S. Treasury yields after Dallas Federal Reserve President Richard Fisher and San Francisco Fed President John Williams both reinforced market expectations that the U.S. central bank is in no hurry to hike interest rates.
The Bank of Japan’s two-day policy meeting gets underway later in the day, with most economists expecting the central bank to refrain from adding to stimulus.
The China Securities Regulatory Commission plans to allow about 100 initial public offerings from June to the end of 2014, state media reported its chairman as saying.
Investors also keep a wary eye on Thailand after the country’s army invoked martial law across the crisis-gripped kingdom to restore order following months of anti-government protests.
<b>U.S. And European Markets </b>
U.S. stocks rose overnight, with gains in small-cap and tech stocks and another drop in bond yields underpinning sentiment after a run of mixed economic data recently. The Dow edged up 0.1 percent, the S&P 500 advanced 0.4 percent and the tech-heavy Nasdaq added 0.9 percent.
The major European markets ended narrowly mixed on Monday, with U.K. shares taking a hit after British pharma group AstraZeneca rejected Pfizer’s final takeover bid. France’s CAC 40 and the German DAX both rose about 0.3 percent each, while the U.K.’s FTSE 100 Index dropped 0.2 percent.
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