Indices may edge higher in early trade

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 27 points at the opening bell even though Asian stocks showed a negative trend. Trading could be volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2017 series to October 2017 series. The near month September 2017 derivatives contract expire on Thursday, 28 September 2017.

Overseas, Asian stocks dropped taking cues from weak close in US stocks overnight. A sharp selloff in technology stocks dragged down the Nasdaq Composite index by around 1% yesterday, 25 September 2017, with North Korea's latest warnings to Washington adding to the downbeat mood. North Korea's foreign minister said President Donald Trump had declared war on the country and that it reserves the right to take countermeasures, including shooting down US bombers even if they are not in its airspace.

Developing Asia is on track to grow faster this year and next, the Asian Development Bank said, buoyed by a pick-up in world trade and China's expansion, but it flagged risks from tightening US monetary policy. Developing Asia is expected to grow by 5.9% and 5.8% in 2017 and 2018, respectively, the Manila-based lender said. India's growth was seen at 7% and 7.4% for this year and next, weaker than the July forecasts of 7.4% and 7.6%.

Crude-oil prices settled sharply higher yesterday, 25 September 2017, lifting Brent crude to a more than two-year high and West Texas Intermediate crude into a bull market and its highest finish in about five months.

Back home, trading for the week started on a subdued note as key benchmark indices settled with modest losses yesterday, 25 September 2017, as weakness in global stocks dampened sentiment. The Sensex lost 295.81 points or 0.93% to settle at 31,626.63, its lowest closing level since 29 August 2017.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 1249.45 crore yesterday, 25 September 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1009.98 crore yesterday, 25 September 2017, as per provisional data.

Prime Minister Narendra Modi has set up a economic advisory council, the government said yesterday, 25 September 2017, as concerns grow about a slowdown in Asia's third largest economy. The new council, headed by Bibek Debroy, a member of Modi's federal think tank Niti Aayog, will address issues of macroeconomic importance and present its views to the prime minister.

Power stocks will be in focus as Prime Minister, Narendra Modi, yesterday, 25 September 2017, launched the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or Saubhagya, at New Delhi. The aim of this scheme is to provide power to all homes.

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