Market may open higher

Domestic markets are set of open in positive zone as trading resumes after a local holiday on reports of a possible stimulus package by the government to counter the economic slowdown.

As per reports, the government might soon provide a broad stimulus package or a sector-specific booster dose. This comes after Prime Minister Narendra Modi's meeting with Finance Minister Nirmala Sitharaman and officials of her ministry last week. There might also be some relief to foreign portfolio investors from the super-rich surcharge.

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 49 points at the opening bell.

On the macro front, India's merchandise exports increased 2.2% to US$ 26.33 billion in July 2019 over a year ago. Meanwhile, merchandise imports dipped 10.4% to US$ 39.76 billion. The trade deficit narrowed 27.9% to US$ 13.43 billion in July 2019 from US$ 18.01 billion in July 2018. This data was announced by government after market hours on Wednesday, 14 August 2019.

Overseas, most Asian stocks were trading higher Friday as investors watched developments in the US-China trade war. In US, the S&P 500 and the Dow gained ground in a late rally on Thursday as upbeat retail sales data offset recessionary fears amid the simmering US-China trade tensions.

Investors and central banks remain concerned though that President Trump's trade war with China is undermining global economic growth after China on Thursday threatened unspecified retaliation against Trump's recent threat to impose more tariffs on its imports from September.

On the data front, U.S. industrial output fell 0.2% in July, the second drop in the past four months, the Federal Reserve reported Thursday. Industrial output is only up 0.5% on a year-on-year basis.

Back home,domestic shares ended with strong gains on Wednesday, tracking firmness in other Asian markets after the US announced a delay in the implementation of tariffs on some Chinese goods. The Nifty closed a tad above 11,000-mark. The Sensex rose 353.37 points or 0.96% to settle at 37,311.53. The Nifty 50 index rose 103.55 points or 0.95% to settle at 11,029.40. The equity markets were closed on Thursday, 15 August 2019, on account of Independence Day.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 1614.63 crore on Wednesday, 14 August 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1619.82 crore on Wednesday, 14 August 2019, as per provisional data.

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