Markets are likely to remain volatile as investors could react to June quarter GDP numbers, that came in at 6 year low of 5 per cent, government data revealed on Friday. Analysts expect the volatility to continue unless there are visible signs of economic revival.
Moreover, stocks of Public Sector Banks will be in focus today after Finance Minister Nirmala Sitharaman, unveiled a mega-merger plan on Friday, after market hours. Under this, 10 public sector banks will be merged to form four large PSBs. Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank will be the four anchor banks.
That apart, investors could react to global developments. New tariffs imposed by the US and China, that came into effect over the weekend, could keep investors jittery. The United States began imposing 15% tariffs on a variety of Chinese goods on Sunday after China put new duties on the US crude.
China has also lodged a complaint against the United States at the World Trade Organization over US import duties, the Chinese Commerce Ministry said on Monday.
Additionally, Market participants will continue to track stock-specific action, oil price movement, and the Rupee's trajectory.
Now let's see, how global markets have fared and what they mean for Sensex and Nifty ---
Asian shares were trading flat during the early moring trade today. Japan's Nikkei was up 0.05 per cent, while South Korea's Kospi was trading 0.3 per cent higher.
At around 7 am, SGX Nifty, the Singaporean Exchange for Nifty Futures, was trading lower indicating a flat to negative start for domestic indices.
Back home, markets were shut on Monday on account of Ganesh Chaturthi. On Friday, the S&P BSE Sensex settled 264 points higher at 37,333 level while the broader NIfty50 closed at 11,023-mark, up 75 points.
Now, lets look at the top headlines and are likely to move markets--
>> Jet Airways fails to find new suitor; further deadline extension for EoI unlikely
>> Maruti Suzuki cuts production for 7th straight month in Aug
>> Growth in manufacturing activity declined to a 15-month low of 51.4 in August owing to weak sales
>> Road ministry seeks GST rate cut for hybrid cars and CNG vehicles to prop-up sales; totaal GST collection below Rs 1 trillion mark in Aug
And before we wrap, here is a stock recommendation by Prabhudas Lilladher--
The brokerage recommends buying Tata Chemicals at current market price with a target price of Rs 640. The stop loss could be placed at Rs 545.