The US markets extending their gains ended modestly higher on Monday, though the trade remained tight ranged and some traders on the sidelines, lacking any major economic data. But the mood was jubilant about the global economic outlook following the Chinese central bank's surprise interest rate cut and European Central Bank President Mario Draghi's comments about further stimulus. Helping bullish sentiment was expectation central banks will continue to boost equities. However, there was some cautiousness with Global Business Outlook survey from Markit Economics reporting that Optimism among companies declined sharply to the lowest level seen since the survey began five years ago. Companies' expectations of input costs in the year ahead fell to a new survey low in October, the weakest being recorded in the U.S. Likewise, firms' selling price expectations also eased, down to the lowest since early 2010.
The Dow Jones industrial average rose 7.84 points or 0.04 per cent to 17,817.9, the S&P 500 was up by 5.91 points or 0.29 per cent to 2,069.41 and the Nasdaq Composite added 41.92 points, or 0.89 per cent, to 4,754.89.
The Indian ADRs made a mixed closing on Monday, HDFC Bank was up by 0.69%, ICICI Bank was up by 0.10% and Infy was up by 1.81%. On the other hand Tata Motors was down by 1.07% and Dr Reddy’s was down by 0.46%.