Market may open with small gains

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 9 points at the opening bell.

Overseas, most Asian shares were trading lower as worries over US-China trade disputes, a possible slowdown in the Chinese economy and higher US borrowing costs tempered optimism despite a rebound in global equities late last week.

US stocks ended higher on Friday, with equities rebounding from a multiday rout that slashed 1,400 points from the Dow Jones Industrial Average at its worst and left the Nasdaq on the precipice of a correction.

In the latest economic data, import prices rose 0.5% in September. Separately, an index of consumer sentiment fell to 99 from a previous reading of 100.1.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1,322.13 crore on 12 October 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1,287.29 crore on 12 October 2018, as per provisional data.

The domestic equity market bounced back strongly on Friday, 12 October 2018, recovering from a brutal selloff in the previous session, after European and Asian shares staged a smart recovery. The Sensex rose 732.43 points or 2.15% to settle at 34,733.58. The Nifty 50 index rose 237.85 points or 2.32% to settle at 10,472.50.

On the macro front, India's industrial production (base year 2011-12=100) increased at moderate pace of 4.3% in August 2018, compared with 6.5% growth recorded in July 2018. The industrial production growth for July 2018 has been revised marginally downwards from 6.6% increase reported provisionally.

The all-India general CPI inflation rose marginally to 3.77% in September 2018 (new base 2012=100), compared with 3.69% in August 2018. The corresponding provisional inflation rate for rural area was 3.34% and urban area 4.31% in September 2018 as against 3.41% and 3.99% in August 2018. The core CPI inflation declined to 5.82% in September 2018 compared with 5.95% in August 2018.

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