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.

Overseas, Asian stocks followed their US counterparts higher after a slew of data and comments from Federal Reserve officials helped ratchet up bets that the US economy is strong enough to withstand higher interest rates.

US stock-market indexes posted solid gains and closed at all-time highs yesterday, 5 October 2017 after Congress passed a budget resolutiona step seen as setting the stage for an overhaul of the tax code. After a House vote, the Senate approved a budget bill on Thursday. Republicans passed tax cuts through what is known as budget reconciliation, which requires just a simple majority in the Senate. Republicans currently control the Senate with 52 seats.

On the data front, initial jobless claims, a tool to measure US layoffs, fell by 12,000 to 260,000 at the end of September. The number of people already collecting unemployment benefits, known as continuing claims, fell slightly to 1.94 million. Separately, the US trade deficit dropped 2.7% in August to $42.4 billion from $43.6 billion in July.

Back home,key benchmark indices logged modest losses yesterday, 5 October 2017 after volatile trading session as profit booking emerged after four-day upmove. The Sensex shed 79.68 points or 0.25% to settle at 31,592.03, its lowest closing level since 3 October 2017.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 656.50 crore yesterday, 5 October 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 519.03 crore yesterday, 5 October 2017, as per provisional data.

Among corporate news,Tata Steel announced production and sales numbers for Q2 September 2017. The company's sales rose 15.73% to 6.4 million tonnes in Q2 September 2017 over Q2 September 2016. Production grew by 4.71% to 6.22 million tonnes in Q2 September 2017 over Q2 September 2016. The announcement was made after market hours yesterday, 5 October 2017.

Bank of Baroda revised lower its Marginal Cost of Funds Based Lending Rates (MCLR) across various maturities by 5 basis points effective 7 October 2017. The announcement was made after market hours yesterday, 5 October 2017.

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