Indian shares are seen opening higher on Monday, tracking firm Asian cues as investors bet on more policy action by central banks in Europe and the U.S. this week to stem the debt crisis in the euro zone.
Having said that, local stocks may see extreme volatality this week in view of Reserve Bank of India's monetary policy review slated for tomorrow. A slew of corporate earnings due this week and the progress of monsoon rains are the other factors that could set some near-term direction for markets.
With inflation still remaining high and the rupee showing an erratic movement, analysts expect the central bank to keep rates unchanged tomorrow. Meanwhile, voicing concern over deficient monsoon rains, Union Agriculture Minister Sharad Pawar on Sunday asked the state governments to take effective steps to tackle possible drought-like situation in the country.
Indian stocks fell sharply last week, with benchmark indexes Sensex and the Nifty falling about 2 percent each, as FIIs turned net sellers on fears over the murky global economic outlook and a worsening domestic economic scenario.
Corporate News
Automobile and cement companies could be in focus as they unveil monthly August sales data.
Allahabad Bank, Bank of Baroda, Corporation Bank, Gail India , PTC India and Spicejet are among the bluechip companies that will announce their Q1 results today.
Maruti Suzuki, India's largest carmaker, reported a larger-than-expected 23 percent fall in first-quarter net profit, hit by adverse currency movements and higher overall expenses.
Tata Power has decided to focus on overseas opportunities to maximise returns and minimise risks, a PTI report says.
United Spirits posted a modest 5 percent rise in its June-quarter net profit.
Mercator said it has subscribed fully to the issue of convertible bonds aggregating $19 million of its listed Singapore subsidiary Mercator Lines.
Asian Markets
Asian markets are trading mostly higher, with Hong Kong's Hang Seng index pacing the gainers, after European Central Bank President Mario Draghi indicated that the central bank may use ECB resources to buy Spanish and Italian bonds.
U.S. Markets
U.S. Stocks moved sharply higher on Friday, adding to the strong gains posted in the previous session, as investors reacted positively to some relatively upbeat U.S. GDP data as well as the latest news out of Europe.
The release of a report from the Commerce Department showed that the pace of U.S. economic growth increased by 1.5 percent in the second quarter compared to an upwardly revised 2.0 increase in the first quarter. Economists had been expecting GDP to increase by about 1.2 percent. While the report points to continued economic growth, analysts noted that the slowdown still leaves the door open for further stimulus from the Federal Reserve.
Meanwhile, Thomson Reuters and the University of Michigan released a separate report showing that consumer sentiment deteriorated by less than previously estimated in July.
In news out of Europe, a report from Bloomberg indicated that European Central Bank President Mario Draghi will meet with the president of Germany's Bundesbank Jens Weidmann to discuss new measures to address the ongoing debt crisis. Citing two central bank officials, Bloomberg said Draghi is seeking to win over ECB policy makers for a multi-pronged approach to reduce bond yields in countries such as Spain and Italy.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.