Markets may open flat; Sun Pharma in focus

Sun Pharma, SBI, FTIL, Adani Enterprises and Titan are stocks to watch

Benchmark indices are likely to open on a flat note tracking the mixed trends in their Asian peers. Some volatility may be expected later in the day on merchandise exports falling 5.04% to $26.09 billion in October from $27.48 billion a year earlier, according to October trade data released by government while trade deficit in the month of October declined compared to the previous month.

 At 8:20AM, the early indicator SGX Nifty was flat at 8,451.50.
 
Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 656.37crore on Monday, as per provisional stock exchange data.
 

Global Markets

 
Japanese shares have rebounded from yesterday's slump boosted by deal activity worth $100 billion in the US and anticipation of European  monetary stimulus. Nikkei has gained around 1.6%.
 
Meanwhile, Chinese shares are trading weak after the launch of direct connect project which connects stock markets of China and Honk Kong. Hang Seng is trading down 0.4% while Shanghai Composite index has lost 0.2%.
 
 
US markets closed mixed with S&P 500 ending at record closing high boosted by deal activity worth $100 billion dollars. The Dow Jones industrial average ended flat at 17,648, the S&P 500 closed at 2,041.32, a record closing high. Nasdaq closed lower by 0.3%  dragged by losses in Google and Gilead.

 
Stocks to watch
 
SBI will be in focus on news reports that in order to make gains from rising stock market it has expanded its list of equities for investments to go beyond the National Stock Exchange's Nifty 50 index scrips.

Adani Enterprise may witness fresh buying as it has signed a memorandum of understanding (MoU) for a loan of up to $1 billion from State Bank of India (SBI) for the mine, rail and port project, which it aims to build by the end of 2017 in Queensland, Australlia.

Sun Pharma may come under pressure on recalling about 68,000 bottles of its anti-depressant venlafaxine hydrochloride, from the US market. The company withdrew the drugs, manufactured in its Halol unit in India, after they failed to dissolve properly, said the US Food and Drug Administration.

 
 
Financial Technologies (FTIL) will be in focus after   announcing that it was selling Bourse Africa, Mauritius, together with its wholly owned subsidiary, Bourse Africa Clear, to Continental Africa Holdings, Mauritius, for $40.5 million.

Stocks of jewellery companies like Titan and PC Jewellers may come under pressure as RBI is considering fresh curbs on gold imports after a 280% surge in gold imports during the month of October pushed total imports up 3.16% to $39.45 billion.