Pre-Market: Markets likely to trade with a positive bias

GAAR postponement likely to some cheer

Markets are likely to trade with a positive bias as an expert committee on General Anti Avoidance Rules (GAAR) has recommended postponement of the controversial tax provision by three years.

On the global front, the markets will react to US Federal Reserve Chairman, Ben Bernanke's, Jackson Hole speech and the ECB meet on September 6, which remains an important event as it would give details on its plan to re-launch government bond-buying programme.

Analysts, however, said domestic investors may continue to be concerned over the logjam in Parliament, which raised the prospect of washout of the remaining part of Monsoon Session which ends on September 7, dashing hopes for much-awaited economic reforms.

Asian shares eased on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.2%, while Japan's Nikkei also opened 0.04% lower.

Back home, automobile and cement stocks will be focus this week as companies from these sectors declare monthly sales data for August.

Meanwhile, Tata Motors has reported 12% increase in total sales in August, while M-and-M reported a 22% rise. This could being the stock back in focus today.

HSBC is looking to offload its entire 4.46% stake in Karnataka Bank, after having exited from three other Indian lenders – Axis Bank, Yes Bank and Federal Bank.

The respective boards of JSW Steel Ltd and JSW Ispat Steel Ltd have given their nod for the merger of the two companies. JSW Ispat shareholders will get one share of JSW Steel for every 72 shares held.