Indian shares are set to open higher on Monday, mirroring firm global cues. Q4 results will continue to remain in focus, with SBI, Tata Steel, Larsen & Toubro and Jet Airways set to announce their earnings results this week.
Benchmark indexes Sensex and the Nifty rose modestly to end at their highest levels since November on Friday, extending gains for the fifth straight week, after the Reserve Bank of India said it will take note of falling headline inflation while deciding on rate cuts in its review next month.
Market experts also attribute the ongoing rally to improved global liquidity situation. According to latest data available with market regulator SEBI, FIIs bought shares worth about Rs 12,000 crore on a net basis so far this month, taking their total inflows in Indian equities to Rs 73,000 crore since January.
In corporate news, the Income Tax department has slapped a Rs 582 crore ($106 million) tax demand notice on Infosys for 2009-10 assessment year.
GSM mobile operators plan to approach the Department of Telecommunications seeking to cancel 19 licenses awarded to Tata Teleservices in January 2008, reports suggest.
The RBI has reportedly suggested reviewing all banking licenses on the fit-and-proper criteria, which involves assessment of the promoters, management and CEOs.
Asian Markets
Asian stocks are broadly higher, with Japan's Nikkei index rallying 1.4 percent to hit a fresh multi-year high on a weaker yen, while South Korea's Kospi is little changed due to renewed tensions on the Korean peninsula after North Korea fired missiles over the weekend. Hong Kong's Hang Seng index is climbing 1.7 percent, Australia's All Ordinaries index is moving up 1.1 percent and China's Shanghai Composite index is edging up 0.3 percent.
The yen pulled up from a 4-1/2 year low versus the dollar after Japanese Economy Minister Akira Amari said the currency's excessive strength has "corrected" and a further slide in the yen could "have a negative impact on people's lives."
In news out of Europe, Cyprus has further relaxed restrictions on foreign banks that were imposed after the debt-laden country sought the $30 billion bailout. Separately, Fitch downgraded Slovenia's sovereign rating, saying it will be the next Eurozone nation to seek external aid amid deterioration in the country's macroeconomic and fiscal outlook.
U.S. And European Markets
U.S. stocks rose on Friday, with the Dow and the S&P 500 reaching fresh record highs, benefiting from upbeat economic reports on consumer sentiment and leading economic indicators as well as comments from Minneapolis Federal Reserve President Narayana Kocherlakota, who continued to make the case for an accommodative monetary policy. The Dow gained 0.8 percent, while the tech-heavy Nasdaq and the S&P 500 added about a percent each.
Thomson Reuters and the University of Michigan said their preliminary reading on consumer sentiment index for May rose to 83.7 from the final reading of 76.4 in April. With the sharp jump, the consumer sentiment index reached its highest level since July of 2007. A separate report from the Conference Board showed that the index of leading economic indicators rose more than anticipated in April, led by building permits and the interest rate spread.
European stocks also closed higher on Friday, with banks and automakers among the strongest performers, after UBS upgraded its rating on global banks to "overweight" and data showed EU auto registrations increased in April. The German DAX rose 0.3 percent, the U.K's FTSE 100 advanced half a percent and France's CAC 40 gained 0.6 percent.
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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.