The market is poised for a gap-down opening on dismal global cues. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could slump 119 points at the opening bell. The key event to be watched out for is the Reserve Bank of India's (RBI) fourth bi-monthly monetary policy review today, 29 September 2015.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 650.01 crore yesterday, 28 September 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 505.59 crore yesterday, 28 September 2015, as per provisional data.
Key benchmark indices dropped sharply on first trading day of the week yesterday, 28 September 2015 on weak global cues. The Sensex fell 246.66 points or 0.95% to settle at 25,616.84, its lowest closing level since 11 September 2015.
Interest rate sensitive banking, auto and realty stocks will be in spotlight ahead of the Reserve Bank of India's (RBI) fourth bi-monthly monetary policy review today, 29 September 2015. The RBI had kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy review on 4 August 2015. RBI Governor Dr. Raghuram G. Rajan had at that time indicated in his written monetary policy statement that going ahead RBI will monitor developments for emerging room for further reduction in the policy rate. The RBI has cut the benchmark lending rate viz. the repo rate by 75 basis points since January 2015.
Larsen & Toubro (L&T) announced after market hours yesterday, 28 September 2015, that its subsidiary, Larsen & Toubro Infotech, filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) on 28 September 2015 to undertake an initial public offering (IPO) of its equity shares. The issue comprises of an offer for sale of up to 1.75 crore equity shares of the face value Re 1 each by L&T.
In overseas markets, Asian stocks tumbled toward an almost three-year low as a selloff in commodity-trading firms spooked investors. US stocks settled yesterday, 28 September 2015 at their lowest levels since late August as concerns about slowing economic growth in China and mixed domestic economic data unnerved investors.
A report yesterday, 28 September 2015 showed household spending climbed more than forecast in August and incomes also rose as the biggest part of the US economy continued to power past a global slowdown. Separate data showed contract signings to purchase previously owned US homes unexpectedly declined in August for just the second time this year, signaling residential real estate might have difficulty building on recent momentum.
Meanwhile, Federal Reserve Bank of New York President William C. Dudley reportedly said yesterday, 28 September 2015 the central bank will probably raise interest rates later this year despite uncertainties over global growth.
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