Markets likely to open flat; Auto stocks may rise

Indian equities are likely to open flat on Monday, January 04, 2010. SGX Nifty is trading at 5,225 (8.09 am), 5.50 points higher than Friday`s closing of 5,219.5.

Auto stocks - Tata Motors, Maruti Suzuki, Mahindra & Mahindra, Hero Honda and TVC Motor will be in focus today following robust sales growth for December 2009.

Asian stocks rose after Chinese manufacturing expanded in December and a stronger dollar boosted the earnings outlook for Japanese car and electronics manufacturers.

US stocks ended 2009 on Thursday with their best gains since 2003, driven by optimism about the economy`s recovery and a brighter outlook for profits.

European stocks posted their third straight weekly advance, as the global economy recovered from its worst recession since World War II.

Oil prices ended 2009 with a bang, surging by about USD10 a barrel in the final two weeks as the country cut into its hefty crude supply.