Global cues positive; Nifty gears up for Vote on Account

The Indian equity market will be keeping its fingers crossed as the countdown to the Vote on Account begins. The government will present an interim budget for FY15. The focus is likely to remain on highlighting the UPA II’s achievements.

Market is likely to be watchful for the government's progress on fiscal consolidation. According to the SGX Nifty, the market is likely to open up 21.5 points at 6083.

The country’s fiscal deficit is expected below 4.5 percent for FY14, but the target for FY15 is likely to be 4.2 percent. How the government will reach that is the main question now. Whether the FM will cut the plan expenditure drastically or roll-ever expenditure into the next fiscal year is to be seen.

Also read: India Inc doesn't expect much from this Vote-on-AccountOn the taxation front, tax collections will hugely underperform the aggressive targets the FM set out in Budget 2013, especially corporate tax & excise. Certain short term measures announced in budget 2013 will lapse. However, there are hopes of a cut in gold import duties and excise on auto.

Meanwhile, the global equity markets are all strongly in the green with the US stocks logging the biggest weekly gain of 2014 on Friday. The Nasdaq ended at a 13.5 year high. The Dow Jones Industrial Average also rallied 126.80 points to close at 16,154.39.

Taking a cue from the US markets, Asian markets rose on Monday while investors shrugged off weak economic data from Japan.

Europe shares close higher; Italy leads the charge

European markets too stocks closed higher on Friday with an impetus of better-than-expected growth data from the euro zone. The stocks showed good rally on the prospect of a new PM too.

From the currency space, the dollar languished at six-week lows against a basket of major currencies still struggling to get over yet more disappointing US economic data. Meanwhile, crude prices gain, supported by a weaker dollar. And in the precious metals space, gold prices hit fresh three-month highs adding to gains after posting its biggest weekly rise in six months.