Indian stock market to gain as Asian peers rise on stimulus policy

Indian equities are expected to rise higher on Monday riding on optimism in global markets. On Monday, Asian stock witnessed a raise as the hope of more stimulus from central banks around the world and steps being taken by big economies such as China and Germany soothed investors’ fear of a sharp global economic slowdown.

In the past few weeks, the recession of anxiety has increased. It is triggered by an inversion in the US bond yield curve that has led to a shakeout in the financial markets. This has driven speculation of more support from all the policymakers. This includes the US Federal reserve which last month cut rates for the first time since the financial crisis.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.25%, Australian stocks added 0.7%, South Korea’s KOSPI advanced 0.5% and Japan’s Nikkei increased by 0.7%.

This Friday, Wallstreet stocks have rebounded after a report said Germany’s coalition government was ready to set aside its balanced budget rule to take on new debt and launch stimulus steps to fight a possible recession.

This Saturday, China’s central bank revealed key interest rate reform to help steer borrowing costs lower for companies and also to support a slowing economy caught in the grip of the ongoing trade war with the US.

A top official said:

“State bank of India which is the largest lender in the country is extended the time for loan repayment for all the stressed automobile dealers by 15 to 30 days amid slowing car sales.”

The bank has an exposure of Rs 11,500 crore to auto dealers.

According to data from EY and Mint analysis:

“Investment, merger, and acquisition (M&A) activity in the roads sector have picked up pace this year as foreign investors pump in millions of dollars to acquire operating roads and developers look to sell assets to pare debt. So far this year, road deals worth around $1.8 billion have been announced. That compares with the entire last year’s deal activity of $2 billion.”

Spandana Sphoorty Financial Ltd among the primary markets is going to make stock markets debut on this Monday with a share price of Rs856 per share.

In the currency market, the dollar index against a basket of six major currencies hovered near a two-week high of 98.339 increased on this Friday. The index was supported as US treasury yields bounced back from the recent lows in the wake of German stimulus hopes.

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