Indices may open lower

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 34 points at the opening bell.

The Reserve Bank of India's (RBI) monetary policy committee (MPC) three-day meeting begins today, 6th October 2021. The MPC will announce its interest rate decision on Friday, 8 October 2021.

IT major TCS will announce its Q2 results on Friday, 8 October 2021. Infosys will announce Q2 results on 13 October 2021.

Ratings agency Moody's hiked India's sovereign credit rating outlook to stable from negative, citing an improvement in the financial sector and faster-than expected economic recovery across sectors. "The decision to change the outlook to stable reflects Moody's view that the downside risks from negative feedback between the real economy and financial system are receding," Moody's said in a report on October 5. It said that with higher capital cushions and greater liquidity, banks and non-bank financial institutions pose much lesser risk to the sovereign than previously anticipated.

Global markets:

Overseas, Asian stocks are trading mixed on Wednesday, following an overnight bounce on Wall Street with stocks rebounding from Monday's losses. Mainland Chinese markets remain closed on Wednesday for the holidays.

The Reserve Bank of New Zealand (RBNZ) on Wednesday raised its official cash rate to 0.5%, joining South Korea and Norway in being among the earliest countries to raise rates in the pandemic era.

The Committee noted that further removal of monetary policy stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment, the RBNZ said in a release.

In US, the major averages rebounded on Tuesday following a technology-centered market rout in the previous session.

In Washington, lawmakers are still trying to agree to raise or suspend the U.S. borrowing limit and avert a dangerous first-ever default on the national debt. The Treasury Department warned last week that lawmakers must address the debt ceiling before October 18 when officials estimate the U.S. will exhaust emergency efforts to honor its bond payments.

Treasury Secretary Janet Yellen said Tuesday she believes the economy would fall into a recession if Congress fails to raise the debt ceiling before a default on the U.S. debt.

Investors are readying for the closely watched jobs report, which will be released on Friday.

The US trade deficit increased to a record $73.3 billion in August as a small gain in exports was swamped by a much larger increase in imports. The Commerce Department reported Tuesday that the monthly trade deficit increased 4.2% in August, rising to an all-time high, surpassing the previous record of $73.2 billion set in June.

Domestic markets:

Back home, the equity benchmarks recovered from early lows and climbed for the second session in a row. The barometer index, the S&P BSE Sensex, jumped 445.56 points or 0.75% to 59,744.88. The Nifty 50 index added 131.05 points or 0.74% to 17,822.30.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,915.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,868.23 crore in the Indian equity market on 5 October, provisional data showed.

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