Monday
morning brings a promising start. After an acrimonious tug-of-war that
sent world markets into a tizzy, the US political leaders have finally
managed to carve out a deal to raise the nation’s debt and avert a
default. The perilous stalemate is over but the deal still needs to go
through the Congress by midnight Tuesday or the US will breach its debt
ceiling. President Obama admitted that it was not the kind of deal that
he would have preferred.
With
a major cloud of uncertainty clearing out, global markets will heave a
huge sigh of relief. Asian markets and US stock futures are up smartly.
The dollar is also up. Against this largely positive backdrop, we expect
Indian indices to rise at start. We could also close the day higher,
spurred by the global euphoria over the US debt deal.
Markets
will also keep a close eye on the monsoon session of Parliament. The
Government has promised to table a spate of crucial bills. It remains to
be seen how many of them are cleared by the parliament.
Monthly auto sales, trade data and manufacturing PMI report will also have some bearing on sentiment.
