Indices poised for weak opening

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 140 points at the opening bell.

The Markit Manufacturing PMI data for September will be declared today, 1 October 2021.

The output of India's eight core industries grew by 11.6% in August compared with 9.9% in the previous month even as the base effect was less beneficial. The core sector, comprising coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, had contracted 6.9% in August last year, as against 7.6% in July.

Auto stocks will be in focus as auto companies will start announcing monthly sales numbers for September starting from today, 1 October 2021.

Global markets:

Overseas, Asian stocks slipped on Friday following an overnight drop on Wall Street. Markets in Hong Kong are closed for a holiday on Friday, while those in mainland China are closed for the Golden Week holiday from Friday till October 7.

Japan's factory activity grew at the slowest rate in seven months in September as overall output and new orders shrank due to the fallout from the coronavirus pandemic, a survey showed on Friday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) in September slipped to 51.5 on a seasonally adjusted basis from 52.7 in the previous month.

Wall Street ended sharply lower on Thursday wracked by concerns over COVID-19, inflation fears and budget wrangling in Washington.

Investors were also keeping an eye on Washington as Congress passed a bill that would fund the government through early December. The bill would avert a government shutdown but Congress still has not raised the debt ceiling, which Treasury Secretary Janet Yellen says will be reached on October 18.

Yellen and Fed Chair Jerome Powell testified before the House Financial Services Committee on Thursday. Yellen reiterated her call for Congress to raise the debt ceiling, saying that failure to do so would be catastrophic.

Domestic markets:

Back home, the equity benchmarks declined for the third session on Thursday amid lack of fresh triggers and mixed global cues. A spike in U.S. benchmark bond yields and a strong dollar capped gains in equities. The barometer index, the S&P BSE Sensex, fell 286.91 points or 0.48% at 59,126.36. The Nifty 50 index fell 93.15 points or 0.53% at 17,618.15.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,225.60 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 97.18 crore in the Indian equity market on 30 September, provisional data showed.

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