Pre-Market: Shares may open lower, Asia weak

Stock markets are expected to open a tad lower on Monday, tracking  weakness  in Asian  stocks.

At 8AM IST, SGX Nifty traded at 6,105 down 8    points from its previous close.

On Friday, US stocks rose, extending gains from a major rally in the previous session, as investors were hopeful for a solution to end the partial US government shutdown and raise the US borrowing limit to avoid a possible default.

The S&P 500, which jumped more than 2 percent on Thursday, ended above 1,700 for the first time since late September.

The Dow Jones industrial average was up 111.04 points, or 0.73 percent, at 15,237.11. The Standard & Poor's 500 Index was up 10.63 points, or 0.63 percent, at 1,703.19. The Nasdaq Composite Index was up 31.13 points, or 0.83 percent, at 3,791.87.

Asian stocks fell, with a regional gauge retreating from a four-month high, as American lawmakers struggled over an accord to raise the US debt limit and restore government operations. Markets in Tokyo and Hong Kong are shut for holidays.

Back home, second-quarter results from blue-chip companies and inflation data for September and the US debt-ceiling issue will set the trend for the stock markets this week.

Reliance Industries is scheduled to report earnings on October 14, HDFC Bank and TCS on October 15, Bajaj Auto (16th), HCL Technologies (17th) and Larsen and Toubro (18th).

Inflation data for September is due to be released on later today.

Investors will look for clarity on US lawmakers extending the US debt ceiling before the October 17 deadline.

STOCKS TO WATCH

MTNL plans to invest about Rs 400 crore to increase 3G mobile Internet speed by up to six times, and enhance the coverage of 2G network.

Wipro and HCL Infosystems are in race for supplying 1.3 lakh handheld devices to post offices under a project that is estimated to cost Rs 1,500 crore.

The Department of Telecom has awarded unified licence to Idea Cellular for seven circles.

The Reserve Bank enhanced the limit for foreign institutional investors (FIIs) to purchase shares in Tech Mahindra up to 45% of the paid up capital of the company.