Market may be nervous on cross border tension; telcos in focus

Moneycontrol Bureau Global triggers are firm but cross border tension may keep investors nervous. After Uri, there was another terror attack in Kashmir. 1 BSF jawan was killed and another was injured after terrorists opened fire near an army camp of in Baramulla. However, Defence minister reiterated India is prepared for any escalation or eventuality. He pledged that the borders are completely safe under the Modi government.

All eyes will be on Reserve Bank of India's monetary policy review to be announced on October 4.

Asian shares began the new quarter cautiously firmer, while sterling took a spill as Britain set a March deadline to start divorce proceedings from the European Union.

Risk sentiment had benefited on Friday from reports Deutsche Bank was negotiating a much smaller fine with the US Department of Justice, though the Wall Street Journal reported on Sunday that the talks were in flux.

Just a hint of a deal was enough to nudge MSCI's broadest index of Asia-Pacific shares outside Japan up 0.2 percent. The index climbed 8.8 percent in the third quarter, its best performance since early 2012.

Back home, a good last hour of trade saw the markets recover on Friday. The Nifty managed to hold 8600

It is a lukewarm start to the biggest-ever spectrum auction. The government has garnered bids worth Rs 53,500 crore on day 1 but there was no takers for the coveted 700-mhz band yet.

Most automakers post a solid show in September ahead of the crucial festival season. Maruti posts its highest ever domestic monthly sales, driven by demand for Baleno & and Brezza. M&M and Eicher Motors sales are in line with estimates.

In the currency space, dollar started off the week on a firmer footing as fears about Deutsche Bank receded and investors looked ahead to this week's US jobs data.

Crude oil crude prices ended the month nearly 8 percent higher, supported in the final week of September by planned OPEC output cuts, but profit-taking after a two-day rally capped gains for benchmark crude on Friday.