Markets likely to open flat; Modi's meet with industrialists eyed

Investors will be awaiting PM Narendra Modi's meet with industrialists in order to discuss the global crisis

Markets are likely to open the session on a flat note tracking mixed global cues. Further, investors will eye PM Narendra Modi’s meet with industrialists in order to discuss the global crisis.

According to market experts, stock markets would take cues from IIP data slated to release later in the week, movement of rupee, overseas investors' investment trend and global news.

The early indicator, SGX Nifty has gained 44 points at 7,605 levels.

The Indian stock market on Monday fell to the lowest in 15 months, while the rupee declined to a two-year low, as foreign investors continued to flee risker assets due to concern over high interest rates in the US and a slowdown in China.

According to Merrill Lynch (BofA-ML) report,  Domestic capital markets are likely to remain volatile in the September-November period due to factors like US Fed's policy action, second quarter corporate earnings and Bihar state elections.

ASIAN MARKETS

China major stock indexes fell in volatile in early trading on Tuesday, after Beijing introduced fresh measures - including tax cuts and a proposed "circuit breaker" system - to discourage speculation and stem further slides in share prices.

The CSI300 index fell 0.7% to 3,226.53 points at 1:59 GMT, while the Shanghai Composite Index lost 0.7% to 3,060.16 points - both indexes were shunted in and out of the black in a reflection of the fragile sentiment.

The Shanghai Stock Exchange also restricted trading in stock options, which can be used by stock investors as a tool to place bearish bets on the market.

The Hang Seng index in Hong Kong was up 0.4%, to 20,661.26 points.

STOCKS TO WATCH

Piramal Realty, an Ajay Piramal group company, is set to take over DB Realty’s Marine Drive project in Mumbai for close to Rs 1,000 crore, a company executive said on Monday.

India has again denied Pfizer Inc a patent on its rheumatoid arthritis drug tofacitinib, the latest setback for a multinational drugmaker seeking to enforce its intellectual property rights in the country.

Rating agency CRISIL has downgraded long-term bank ratings on Amtek Auto group company JMT Auto Ltd (JMTL) to 'BBB-' from 'BBB+' in the wake of shrinking revenue and profitability.

The proposed new regime for calculating base rate, the benchmark rate for pricing loans, is going to affect lenders with a greater proportion of term deposits in their funding base the most, says a Moody’s report.

According to the report, Oriental Bank of Commerce (OBC), Indian Overseas Bank (IOB), YES Bank, Canara Bank, and Union Bank are among the ones that will be most affected.

Indian food products company Britannia Industries Limited was planning to set up an agro processing plant in Chittoor district of Andhra Pradesh.

With BS Reporter & Reuters input