After last week's severe setback, the Indian market is likely to open higher Monday morning amid easing concerns about Dubai's financial crisis.
In a pre-emptive move, the United Arab Emirates' central bank on Sunday eased credit for lenders to provide extra liquidity for both domestic and foreign banks if needed. Banks will be able to borrow money from the central bank for half a percentage point above the three-month local benchmark interest rate, according to the Abu Dhabi-based regulator.
Though U.S stocks closed lower on Friday, the major averages ended well off their worst levels of the short trading day. The Dow futures are currently up 58 points.
In Europe, stocks showed a substantial turnaround on Friday after moving sharply lower at the open. The U.K.'s FTSE 100 Index rose 1%, while the French CAC 40 index and the German DAX index closed up 1.2% and 1.3% respectively.
With investors getting back into the buying mode, the major markets across the Asia-Pacific region are also trading sharply higher this morning.
That said, today's trading is likely to be influenced by second-quarter GDP data scheduled to be released around noon. Foreign institutional investors sold shares worth Rs.1,057.18 crore on a net basis Friday, provisional data released by the BSE showed.
Crude oil rose by nearly a percent in Asian trading on Monday after the Abu Dhabi-based U.A.E. central bank allowed banks to borrow using a special facility tied to their accounts to prevent a possible default by the country's banks. Additionally, the dollar retreated against a basket of global currencies, bolstering the attraction of commodities.
In corporate news, traders will react to Tata Motors' second-quarter group results announced after the closing of market hours on Friday.
According to reports, FMCG majors Godrej Consumer Products and Marico are in the race to acquire British skincare brand simple. Pharmaceutical major Wockhardt and Singapore's DBS Bank have finally agreed to an out-of-court settlement in the corporate debt restructuring (CDR) case.
Larsen and Toubro is all set to announce the formation of a joint venture with the Nuclear Power Corporation of India for setting up a Rs 2,000-crore project to make forgings for nuclear power plants.
Dhanalakshmi Bank said it has received RBI approval to raise FII and NRI investment limit in the bank to 49% and 24%, respectively.
The Indian market witnessed broad-based selling last week, prompted by profit booking on concerns about debt default on the part of Dubai World. While the BSE Sensex fell 2.29%, the broader S&P CNX Nifty declined 2.19%, the BSE mid-cap index moved down 2.19% and the small-cap index shed 2.1%.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.