Markets likely to open lower; GDP, RBI Policy in focus

The early indicator, SGX Nifty has slipped by 23 points at 7,943 levels

RBI monetary policy review on Tuesday, outcome of September quarter GDP data and developments related to GST Bill in the ongoing Winter Session of Parliament would drive the market sentiment this week, say experts.

According to Anand Rathi's morning report," NIfty needs to hold above 7920 zones with follow up buying interest to continue the bounce back move towards 8,000 and 8,050 levels. However if it fails to hold 7900 levels then the index may again get trapped in the grip of bears drift towards 7,850 and 7,800 levels."

The report further adds, "In case of Sensex, if it sustains above 26,000 levels then bounce back may continue towards 26,250 and 26,500 levels while holding below 25,900 may drag the index towards 25,750 and 25,500 levels".

GDP data for September quarter would be announced on Monday. Most economists estimate GDP growth in the second quarter at 7.3-7.6%.

RBI would announce its fifth bi-monthly monetary policy review on Tuesday. A Reuters poll of economists showed that the Reserve Bank of India (RBI) is expected to hold its policy interest rate at 6.75 percent next week to stifle inflation.

Besides, investors would monitor the monthly sales data announcement from auto companies starting Tuesday.

Among global peers, the world's two biggest central banks will move decisively in opposing directions next week, with the European Central Bank (ECB) almost certain to ease policy on Thursday and a US jobs report likely to seal the case for a Fed rate hike in December.

The early indicator SGX Nifty has slipped 23 points at 7,943.

CORPORATE NEWS

Jaguar Land Rover has phased out its most-affordable sports utility vehicle (SUV) offering in India, the Freelander 2, a little over 30 months after launching it in the country. Tata Motors will be in focus.

Reliance Industries is facing a 40% cut in the marketing margin it charges on selling its KG-D6 gas to fertiliser and LPG plants after the government notified a ceiling of Rs 200 per thousand standard cubic meters (scm).

SpiceJet said it would operate more number of flights from here to various Indian cities. The company plans to order more than 150 planes in the current financial year, the airline's chairman said on Sunday.

PVR expects to add at least 23 screens in the current financial year to take the total to 500 in the same fiscal.

YES Bank has invoked 3.02% of United Breweries’ stake pledged by Vijay Mallya and valued at Rs 770 crore for loans defaulted by the defunct Kingfisher Airlines.

Vedanta has incurred a cumulative loss of Rs 4,299 core on its 1 million tonne Lanjigarh alumina refinery since the beginning of commercial operations in August 2007.

Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged the central government to work out a medicines for oil barter arrangement with Venezuela. The proposal has been made as foreign exchange (forex) controls in Venezuela have made repatriation of funds difficult for Indian companies operating there. Dr Reddy's, Glenmark, Sun Pharmaceutical and Claris Life Sciences are the top exporters to that market.

Cipla in a statement issued on Saturday has stated that the company will explore all legal options following Delhi High Court ruling that it infringed on Roche's patent on anti lung cancer drug erlotinib hydrochloride, sold under the name of Tarceva.

L&T Finance has invested Rs 100 crore in two residential projects of Rishabh Group in the NCR region, as per an industry source.

With PTI and Reuters input