Market may open higher

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 17 points at the opening bell.

On the macro front, core sector output rose 4.9% in November 2016 on the back of a strong expansion in steel production and electricity generation, but the pace of growth was down from 6.6% in October 2016, data released yesterday, 2 January 2017, showed. Part of the buoyancy was due to the base effect of a lower growth rate at 0.6% in November 2015.

Overseas, Asian stocks began 2017 on a mixed note today, 3 January 2017, uninspired by a surge in European markets to their highest in more than a year, while the dollar resumed its climb after last week's stumble. Japan was closed for an extended New Year holiday. US financial markets were closed yesterday, 2 January 2017.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 260.64 crore yesterday, 2 January 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 20.66 crore yesterday, 2 January 2017, as per provisional data.

Among corporate news, Tata Motors said its passenger and commercial vehicle total sales rose 2% to 40,944 units in December 2016 over December 2015. The company's domestic sales of Tata commercial and passenger vehicles rose 1% to 35,825 units in December 2016 over December 2015. Exports surged 12% to 5,119 units in December 2016 over December 2015. The sales figures were announced after market hours yesterday, 2 January 2017.

Two-wheeler major Hero MotoCorp reported a 34% decline in sales at 3.30 lakh units in December 2016 over December 2015. The company's plants at Gurgaon, Neemrana and Hardwar were closed on account of annual maintenance shutdown between 26-31 December 2016, Hero MotoCorp said in a statement. The sales figures were announced after market hours yesterday, 2 January 2017.

ICICI Bank reduced its benchmark rate the one-year marginal cost of lending rate (MCLR) by 70 basis points to 8.2%. The announcement was made after market hours yesterday, 2 January 2017.

Key benchmark indices posted small declines yesterday, 2 January 2017. The barometer index, the S&P BSE Sensex, fell 31.01 points or 0.12% to settle at 26,595.45. The Nifty 50 index fell 6.30 points or 0.08% to settle at 8,179.50. The broad market depicted strength. Trading volumes were thin in markets across the globe as many traders remained out for an extended New Year's break.

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