Markets may open higher; NBFC stocks in focus

Asian markets are trading higher; Dow Jones and S&P 500 closed at record high levels on Monday

Benchmark indices are likely to open marginally higher tracking gains in Asian markets. However, markets may turn volatile later as investors remain cautious ahead of the release of industrial production and consumer inflation data later in the week.
 
At 8:30AM, the SGX Nifty was up 14.5 points at 8,405. Foreign institutional investors were net buyers in Indian equities worth Rs 355 crore on Monday, as per provisional stock exchange data.
 
Asian markets are trading higher on strong gains made by their US peers. Chinese markets have continued to rally after a fresh date was announced to link the stock markets of Hong Kong and China.

However, there is some caution weighing on investors sentiments due to the mixed Chinese economic data. Nikkei is trading with a gain of 0.7%, Hang Seng has gained around 0.4% and Shanghai Composite is the biggest gainer with an advance over 1%.
 
US markets closed higher with Dow Jones and S&P 500 closing at record high levels for a fourth session on Monday. The rally was led by transportation and healthcare stocks. The Dow Jones industrial average rose 0.23% to close at 17,613.74, the S&P 500 gained 0.31% to end at 2,038.26, and the Nasdaq Composite gained  0.41% to close at 4,651.62.

 
Stocks to watch

NBFCs like Muthoot Finance, IDFC and LIC Housing Finance and others, may come under pressure as RBI has come up with new regulatory framework for NBFCs. In a bid to bring non-banking financial company (NBFC) norms in line with those of banks, the Reserve Bank of India (RBI) on Monday unleashed tighter rules for NBFCs.

According to the new guidelines, NBFCs will require higher minimum capital, have less time to declare bad loans, and a board-approved fit and proper criteria for director appointments. 
 
HCC stock may witness fresh buying as SEBI has approved its goal of raising Rs 750 crore through IPO of its realty arm Lavasa Corporation.

 
Apollo Tyres will be in focus after posting good numbers in its Q2 results boosted by improved domestic business.
 
Jet Airways will be in focus after the Jet board on Friday approved raising of up to $300 million long-term finance, in the form of redeemable preference shares or non-convertible debentures or a loan.




(with Reuters input)