Market may drop in early trade

Key indices may edge lower in early trade tracking weakness in most of the Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the index could fall 26.35 points at the opening bell.

In overseas stock markets, Asian stocks edged lower after Federal Reserve Chairwoman Janet Yellen on Friday, 26 August 2016 signaled the possibility of an interest-rate increase later this year but Japanese shares bucked the trend, boosted by a relatively weaker yen. Japan's Nikkei Average was currently up 2.24%. Investors tend to pull money out of assets in emerging markets and redirect it to the US if there is a hike in US interest rates.

US stocks closed mixed on Friday, 26 August 2016 after Federal Reserve Chairwoman Janet Yellen signaled the possibility of an interest-rate increase later this year. On Friday, 26 August 2016, Yellen in her highly-anticipated speech at an economic symposium at Jackson Hole, Wyoming said she was optimistic about the US economy, fueling expectations that interest rate hikes were ahead. She said the Federal Open Market Committee continued to anticipate gradual increases in the federal funds rate over time to achieve and sustain employment and inflation in line with the Fed's objectives. She added the solid performance in the US labor market and outlook for economic activity and inflation had strengthened the case in recent months for an increase in the federal funds rate.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 341.35 crore on Friday, 26 August 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 266.43 crore on Friday, 26 August 2016, as per provisional data.

Among corporate news, Indusind Bank said it opened its first branch in Pathankot, Punjab. With this, the bank now has 81 branches in Punjab. The announcement was made after trading hours on Friday, 26 August 2016.

Key benchmark indices registered small losses after witnessing volatility towards late trade on Friday, 26 August 2016. The Sensex lost 53.66 points or 0.19% to settle at 27,782.25, its lowest closing level since 10 August 2016.

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