Markets likely to open lower; rate sensitives, metals in focus

Here are a few stocks you need to keep a tab on for today

Markets are likely to open on a lower note as investors are likely to remain cautious ahead of the RBI monetary policy due tomorrow. Also, muted trend in the Asian peers is likely to weigh on the bourses.

Global Markets:

Asian shares got off to a downbeat start on Monday, after weekend Chinese data raised concerns about growth in the world's second-largest economy.

China's factory sector unexpectedly shrank for the first time in nearly 2-1/2 years last month and firms see more gloom ahead, according to a survey released on Sunday. The official Purchasing Managers' Index (PMI) fell to 49.8 in January, a low last seen in September 2012 and below the 50-point level that separates growth from contraction on a monthly basis. Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng are down between 0.5-2%.

The early indicator SGX Nifty is down 0.5%.

On Wall Street on Friday, major U.S. stock indexes posted losses for the week and month, driven in part by concern about weak overseas demand. The S&P 500 was down 3.1 percent for January, its biggest monthly slide in a year.

Stocks to watch:

Rate sensitive stocks including realty, banking and capital goods stocks are likely to remain on the investor’s radar ahead of the RBI monetary policy due tomorrow.

Metal stocks are likely to remain in focus after China's factory sector unexpectedly shrank for the first time in nearly 2-1/2 years last month and firms see more gloom ahead, according to a survey released on Sunday.

HDFC Bank is likely to raise Rs 10,000 crore on Tuesday. The private lender is said to have appointed Bank of America Merrill Lynch to manage the share sale. The bank is considering a part-American depository receipt (ADR) issue and part-qualified institutional placement. Fund raising through the ADR route would be a smart move, as these are trading at a 10 per cent premium to domestic shares.

After the largest ever disinvestment, the government on Friday raised Rs 22,557.63 crore from the sale of its 10 per cent shareholding in Coal India. 

Aviation stocks are likely to remain in focus as Jet fuel (ATF) price is cut by a steep 11.3% and now costs less than diesel. Last month, its rate had fallen below the price at which petrol is sold.