Sensex, Nifty may be subdued amid caution; OMCs in focus
Oil marketing companies may be in focus on steep hike in fuel prices. Petrol price is raised by Rs 1.34 a litre, fifth increase in two months. Diesel, too, is hiked by Rs 2.37 a litre on back of spike in global rates.
Caution prevails on Dalal Street as the Nifty fell 1.3 percent last week while broader markets outperformed. The SGX nifty indicates a subdued start today. Asian shares dipped while the dollar held firm near seven-month high against a basket of major currencies after comments from Federal Reserve Chair Janet Yellen boosted long-dated US bond yields.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent in early trade while Japan's Nikkei rose 0.2 percent.
In the US, stocks closed mostly higher on Friday as investors digested commentary from key Federal Reserve officials while parsing through strong bank earnings and US economic data.
On Friday, US Federal Reserve Chair Janet Yellen said the central bank might want to let inflation run hotter for a while. She pointed out that the economy has seen an unusual tendency of weak demand against strong supply, making it reasonable "to ask whether it might be possible to reverse these adverse supply-side effects by temporarily running a 'high-pressure economy,' with robust aggregate demand and a tight labour market.
The big trigger this week will be the final US presidential debate on Wednesday. According to a New Wall Street journal/NBC News poll - Hillary Clinton is consolidating a substantial lead over Donald Trump less than a month before Election Day, picking up support from women and swing voters. Heading into the final presidential debate in Las Vegas on Wednesday, Hillary Clinton led trump by 11 percentage points among likely voters - a big jump from the six-point edge she held in mid-September.
Back home, oil marketing companies may be in focus on steep hike in fuel prices. Petrol price is raised by Rs 1.34 a litre, fifth increase in two months. Diesel, too, is hiked by Rs 2.37 a litre on back of spike in global rates.
Russian oil giant Rosneft has cemented the deal to buy 49 percent stake in Essar oil. The deal values Essar Oil at Rs 72,800 crore and the company will get additional Rs 13,300 crore for its Vadinar port.
On earnings radar, Ultratech Cement is expected to post a good Q2 quarter. Its Q2 profit seen rising by 40 percent on better operational performance, lower interest and higher other income
The 8th BRICS summit ended with the adoption of the Goa declaration which pledges opposition to terrorism, leaders agree to strengthen counter-terror partnerships both at bilateral and international levels. This even as Prime Minister Narendra Modi terms Pakistan as the 'mothership of terrorism' at BRICS summit.
In currency space, the dollar on Friday posted its best weekly performance in more than seven months after strong US retail sales and producer prices data for September reinforced expectations the Federal Reserve would raise interest rates in December.
Crude oil prices fell on Friday as a stronger dollar weighed on the market and an industry report showed US oil drillers continue to ramp up activity with prices holding above USD 50 a barrel.