Stocks may open higher

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 53 points at the opening bell. Markit Manufacturing PMI for May will be declared on today, 1 June 2021.

India's gross domestic product (GDP) for 2020-21 contracted by 7.3%, even as GDP for the year's last quarter (January-March 2021) grew by 1.6%, official data released by the National Statistical Office showed on May 31.

Global markets:

Overseas, Asian stocks are trading mixed on Tuesday ahead of European and U.S. data this week that will likely offer clues on the health of the global economy.

China's factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9.

Markets in the U.S. were closed on Monday for a holiday.

Meanwhile, the global economic outlook is improving as vaccine rollouts allow businesses to resume operations and as the United States pumps trillions of dollars into the world's largest economy, the OECD said on Monday, nudging its forecasts higher.

The global economy is set to grow 5.8% this year and 4.4% next year, the Organisation for Economic Cooperation and Development said, raising its estimates from 5.6% and 4% respectively in its last forecasts released in March.

Domestic markets:

Back home, the domestic equity benchmarks ended with robust gains on Monday. Investors sentiment improved due to a steady decline in daily COVID-19 cases in India. Strength in other Asian stock markets also supported buying. The barometer index, the S&P BSE Sensex, advanced 514.56 points or 1% to 51,937.44. The Nifty 50 index gained 147.15 points or 0.95% to 15,582.80.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,412.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 179.78 crore in the Indian equity market on 31 May, provisional data showed.

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