Sensex, Nifty Set To Follow Global Peers Higher

Indian shares look set to open on a firm note Monday, helped by firm global cues and continued FII buying.

Data showed foreign portfolio investors (FPIs) pumped in Rs. 43,838 crore in Indian equities in May, the highest level in nine months, with financials, telecom, automobile and construction sectors attracting big investments.

Focus shifts to the RBI policy meeting due this week, with most economists expecting policy rates to remain unchanged.

Asian markets extended a global rally this morning and gold eased on a firmer dollar while oil prices rose about 1 percent after Saudi Arabia decided to deepen its crude oil production cuts.

U.S. stocks posted strong gains on Friday as the latest jobs report delivered mixed signals and the passage of a debt-ceiling agreement helped avert concerns surrounding debt default.

The Dow rallied 2.1 percent, while the tech-heavy Nasdaq Composite surged 1.1 percent to reach over one-year high and the S&P 500 added 1.5 percent to set a new nine-month closing high.

Data showed non-farm employment soared by 339,000 jobs in May while economists had expected an increase of 190,000 jobs.

However, a rise in unemployment rate to a seven-month high of 3.7 percent and lower average hourly earnings helped keep alive hopes of Fed pausing rate hikes.

European stocks rose sharply on Friday amid easing U.S. debt worries.

The pan European STOXX 600 jumped 1.5 percent. The German DAX climbed 1.3 percent, France’s CAC 40 jumped 1.9 percent and the U.K.’s FTSE 100 gained 1.6 percent.

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