 "Pre-market: Weak global cues to weigh; RBI policy in focus")
Benchmark shares indices are likely to open lower on Tuesday, amid weak global cues, even as rate sensitive sector will be in focus ahead of the RBI policy review later today.
At 8:35AM, the early indicator SGX Nifty was down 128 points or 1.7% at 7,705.
"The markets may witness a downside gap. For the Sensex, resistance is at 25670 and above 25775. Support is at 25590 below 25386 and more. For the Nifty resistance is seen at 7825 above 7854 and 7873. Support is at 7782 below 7753,7720 and more," Geojit BNP Paribas Financial Services said in a note.
Meanwhile, foreign investors were net sellers in equities to the tune of Rs 650 crore on Monday.
The rupee ended higher on Monday at 66.05 to the US dollar amid dollar sales by banks and exporters tracking the decline in equities.
GLOBAL MARKETS
Asian equities were trading lower with commodity stocks dropping the most amid sharp decline on Wall Street in overnight trades and sluggish economic data from China. Profit of Chinese industrial firms declined 8.8% in August compared to August 2014. China's Shanghai Composite was down 1.4% while Hang Seng dropped 3.3% and Japan's Nikkei was down 2.9%.
European equities declined on Monday weighed down by selling pressure in Volkswagen and after Glencore slumped 31% on concerns that it has been unable to reduce its huge debt burden. The FTSE-100, CAC-40 and DAX ended down 2.2-2.8% each.
Stocks on Wall Street ended sharply lower on Monday amid growth concerns in China and prospects of a rate hike by the US Federal Reserve. The Dow Jones ended down 312 points or 1.9%, the broader S&P 500 ended down 2.6% and the tech-laden Nasdaq ended down 3%.
STOCKS
Rate sensitive stocks led by banks will be in focus ahead of the RBI policy review later today.
Bajaj Auto will be in focus on reports that it plans to foray into the Russian market with its Pulsar range of motorcycles.
L&T will be in focus after its technology arm, L&T Infotech, on Monday filed an offer document with the Securities and Exchange Board of India (Sebi). The engineering major is planning to sell 17.5 million shares (about 10.8 per cent) in L&T Infotech through the initial public offerings (IPO).
ONGC and BPCL could see some pressure on reports that its plans to set up a regasification liquefied natural gas (LNG) terminal at New Mangalore Port would be delayed.
Reliance Industries would be in focus on reports that it plans to raise $1.5 billion to refinance its old loans. RIL will raise the loan in two tranches - $1.36 billion in US dollars and $140 million in Japanese yen.
Maruti Suzuki may see some action amid reports that the auto major is expected to sign a re-worked state support agreement with the Gujarat government after an awaited nod from its minority shareholders that will allow Japanese parent Suzuki Motor Corporation to run the upcoming plant in Hansalpur.
Colgate Palmolive India may gain after the shareholders approved bonus issue in the ratio of 1:1.
