Indian shares are set to open higher on Monday, mirroring firm Asian cues as concerns over Europe's debt crisis eased and data showed a measure of business confidence in Japan exceeded expectations.
Having said that, the dollar is rising against major world currencies on waning euphoria over a bank bailout for indebted Spain. Crude futures are down about 1.5 percent to $83.72 a barrel after climbing 9.4 percent to settle at a three-week high of $84.96 a barrel on Friday.
China's Shanghai Composite index is drifting down 0.2 percent after official figures showed China's manufacturing activity fell to a seven-month low in June.
Closer home, investors are pinning hopes that the government will accelerate its plans to give a big push to FDI in multi-brand retail after the presidential polls this month. Commerce and Industry Minister Anand Sharma said earlier last week that the government has already received written commitments from seven States and he had written letters to the Chief Ministers of other states ruled by non-Congress parties seeking their support for backing the move to liberalize multi-brand retail trade.
Meanwhile, monsoon rains were less than normal in June, with a deficit of 31 percent as on July 1,but weather officials are still hopeful of good rains in July and August.
In corporate news, auto major Mahindra & Mahindra reported a 16.12 percent rise in its June sales, while Tata Motors, India's largest automaker, reported a 3 percent decline in its total sales for the month.
Private lender HDFC Bank plans to launch 1 million new credit cards in current fiscal in line with its strategy to further penetrate the credit card business, reports state, citing HDFC Bank Business Head (Credit Cards & Merchant Acquiring Services) Parag Rao.
IT giant Wipro's chairman and managing director Azim Premji saw his remuneration falling by nearly one-third to 1.9 crore last fiscal, but the group's IT business CEO TK Kurien's pay package grew over five times to 4.5 crore, according to media reports.
GVK Power & Infrastructure said the financial closure for its $10-billion Alpha coal and rail project in Queensland, Australia, was expected by March 2013, as opposed to the original deadline of December 2012, due to delays in receiving necessary environmental clearances from the local authorities.
Steel Authority of India will reportedly invest Rs 3,000 crore to quadruple capacity of its Gua iron ore mine in Jharkhand to 10 mtpa and set up a 4 mtpa pelletisation plant.
On Wall Street, stocks rallied on Friday after EU Leaders agreed to make use of Eurozone's bailout funds to recapitalize the region's banks directly once an effective single supervisory mechanism is established, relieving the governments of the burden of bailing out troubled lenders.
Traders, meanwhile, largely shrugged off a mixed batch of U.S. economic data, including a report from Thomson Reuters and the University of Michigan showing that consumer sentiment deteriorated by more than previously estimated in the month of June. The Dow jumped 2.2 percent, the tech-heavy Nasdaq soared 3 percent and the S&P 500 surged up 2.5 percent.
Major European markets too ended sharply higher on Friday, with the German DAX and France's CAC 40 climbing 4-5 percent.
by RTT Staff Writer
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