Indian markets may open higher; Airtel in focus
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Investors will watch out for gross domestic data, auto monthly numbers and PMI data this week

Indian markets on Monday are likely to open higher, tracking gains in the SGX Nifty. However, gains are likely to cap amid surge in international crude prices, analysts said. In morning trade, SGX Nifty climbed 0.6% to 16,814. On Friday, the Sensex closed at 56,124.72, up 175.62 points or 0.31%, while Nifty was at 16,705.20, up 68.30 points, or 0.41%. 

Asian stocks were steady as traders weighed Jerome Powell’s signal that pandemic-era Federal Reserve policy support will be withdrawn cautiously and gradually. Crude oil advanced 2% but paired its gains.

Shares gained in Japan, slipped in Hong Kong and fluctuated in China, where Beijing’s regulatory broadside remains in focus. US futures were steady after a record Wall Street close in the wake of chair Powell’s Jackson Hole speech.

Powell said the Fed may start paring bond purchases this year but is in no hurry to raise interest rates and will be guided by data on Covid-19 risks.

Powell didn’t give a specific timeline for scaling back stimulus. Traders are awaiting U.S. jobs data this week to assess whether the economic recovery merits an earlier tapering.

Domestically, investors will watch out for gross domestic data, auto monthly numbers and PMI data this week.

The much-awaited GDP data for the June-ended quarter is due on Tuesday evening. The headline figures won’t reflect the shock of the second covid-19 wave, given the ultra-low base. Most forecasts peg year-on-year GDP growth at around 18-22%. The sequential figure could provide a more reliable picture: they predict around a 15% contraction, much softer than the 24.4% hit during the first wave of 2020.

Bharti Airtel's stock will be in focus after its board approved raising up to ?21,000 cr via a rights issue at ?535 per share at its meeting on Sunday.
 

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