Pre-market: Jul-Sep earnings, inflation in focus

Markets are likely to open lower, amid weak global cues, with second quarter earnings and inflation data in focus. Further, selling by foreign funds will also weigh on market sentiment.

At 8:35AM, the early indicator SGX Nifty was down 62 points at 7,814.

The government will release consumer price inflation data for September later today.

Foreign funds were net sellers in equities to the tune of Rs 720 crore on Friday.

Asian markets witnessed sell off tracking weakness in global stocks with shares in China declining the most. Japanese financial markets are closed today. Meanwhile, investors are adopting a wait and watch stance ahead of Chinese trade data due later today. The Shanghai Composite was down 1.2% while Hang Seng and Straits Times were both down 0.7% each.

US stocks ended sharply lower on Friday and the benchmark Dow Jones slipped into negative terrrain for the year with technology shares declining the most. Weak from Germany, Europe's largest economy, weighed on investor sentiment. The S&P 500 and Nasdaq recorded their highest weekly drop since May 2012. The Dow Jones ended down 115 points or 0.7% at 16,544.10, the broader S&P 500 ended 22 points lowe or 1.15% at 1,906.13 and the tech-laden Nasdaq Composite slumped 102 points or 2.3% to end at 4,276.24.

Stocks to watch

Reliance Industries will be in focus ahead of its second quarter earnings due for release later today. Earnings for the second quarter would mirror the fall in crude oil prices and appreciation in the rupee.

Tata Motors will see some action on reports that JLR sales in September were up 7% at 46,299 units.

Future Retail is likely to gain after it said that Amazon India and Future Group entered a strategic alliance to leverage the extensive brand portfolio and sourcing base of Future Group and e-commerce platform and reach of Amazon.in.

Capital goods shares such as BHEL and L&T will see some pressure on the back of weak August industrial output.

Diamond Power may see some action on the back of strong July-September earnings.

Novartis may witness profit taking on reports that the NPPA has imposed Rs 300 crore penalty for overcharging.

Pfizer will see some gains after its US-based parent won a patent for Voriconazole in India.