Stocks may open on weak note on negative global cues

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Trading of Nifty index futures on the Singapore Stock Exchange indicates that Nifty could slide 119 points at the opening bell. The Markit India PMI Services for September will be released today. In the near term, the Reserve Bank of India’s (RBI) monetary policy committee (MPC) is scheduled to meet from 6th to 8th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021. IT major TCS will announce its Q2 results on Friday, 8 October 2021. Infosys will announce Q2 results on 13 October 2021.

Global markets: Overseas, Asian stocks traded lower on Tuesday following overnight losses on Wall Street, with the tech-heavy Nasdaq Composite falling more than 2%. Markets in mainland Chinese are closed through Thursday for the Golden Week holidays. US stock benchmarks end lower Monday as concerns about sticker-than-expected inflation grow on rising oil prices. A selloff for stocks deepened Monday, with markets succumbing to pressure in technology and tech-related stocks.

On Monday, the Organization of the Petroleum Exporting Countries and its allies kept their current agreement to gradually raise crude production each month, including a 400,000 barrels a day increase in November. In US-China relations, President Biden’s top trade negotiator, US Trade Rep. Katherine Tai, was reportedly quoted on Monday as saying that China has failed to live up to its commitments under an agreement signed last year.

New orders for US-made goods accelerated in August. The Commerce Department said on Monday that factory orders increased 1.2% in August. Data for July was revised higher to show orders rising 0.7% instead of gaining 0.4% as previously reported.

Domestic markets: Back home, the key equity indices snapped a four-day losing streak and ended with strong gains on Monday. The barometer index, the S&P BSE Sensex, surged 533.74 points or 0.91% to 59,299.32. The Nifty 50 index added 159.20 points or 0.91% to 17,691.25. Foreign portfolio investors (FPIs) bought shares worth Rs 860.50 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 228.06 crore in the Indian equity market on 4 October, provisional data showed.

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