Market Likely To Open In Positive

Indian equities market on Friday settled marginally lower as investors awaited monthly factory production data. The Sensex, fell 11.96 points or 0.05% to settle at 25,610.21 and the Nifty rose 1.20 points or 0.02% at 7,789.30. Both the indices have recorded their first weekly gain in five weeks as PM Narendra Modi’s meeting with the India Inc, short coverings, value buying amid key decisions taken by the Cabinet supported market sentiments for the week ended September 11. However, broader markets outperformed the Sensex with small-cap index rising 0.63% and mid-cap gaining 0.17%. For the week, BSE Sensex closed at 25,610.21 up by 1.6% and NSE Nifty closed at 7,789.30 up by 1.8%. While broader markets underperformed the Sensex with BSE Mid-Cap index rose 160.06 points or 1.54% to settle at 10,519.96 and BSE Small-Cap index rose 93.37 points or 0.88% to settle at 10,698.61.

Factory output figures (IIP data) which came after market hours on Friday grew 4.2% in July against 0.9% a year ago. This is a positive surprise with the market expectations being around 3.5%.

U.S. stocks ended the week on a high note, with the main indexes advancing and posting solid weekly gains as expectations for a rate increase faded further. The Dow Jones Industrial Average rose 102.49 points, or 0.6%, to close at 16,432.89, for a 2% weekly gain. The Nasdaq Composite ended the day up 26.09 points, or 0.5% at 4,822.34 and finished the week 3% higher. The S&P 500 index closed 8.72 points, or 0.5% higher at 1,961.01 and gained 2.1% over the week.

European markets closed lower on Friday but the regional benchmark still logged its strongest weekly gain in almost two months. Investors' focus remained on next week's meeting of the U.S. Federal Reserve. The Stoxx Europe 600 fell 1% to close at 355.72. In Frankfurt, Germany’s DAX 30 fell 0.9% to 10,123.56, France’s CAC 30 shed 1% to 4,548.72 and FTSE 100 fell 0.6% to 6,117.76. For the week, DAX 30 ended 0.9% higher; France’s CAC 30 climbed 0.6% and FTSE 100 advance to 1.2%.

Crude oil futures fell sharply on Friday, after Goldman Sachs lowered its forecast for oil prices amid ongoing concerns over a global supply glut. U.S. crude futures' front-month contract settled down USD 1.29 at USD 44.63 a barrel. The front-month in Brent slid 75 cents to settle at USD 48.14. For the week, WTI oil futures lost USD 1.19, or 3.08% and Brent futures lost USD 1.13, or 2.96%.

Asian stocks mostly edged down in cautious trade on Monday, as traders digest a slew of Chinese data released over the weekend and investors awaited this week’s Federal Reserve policy decision to raise interest rates for the first time in a decade. Japan’s NIKKEI 225 index slips 0.52%, as did South Korea’s Kospi index. Australia’s S&P/ASX 200 Index rose 0.4% and New Zealand’s NZX 50 Index increased 0.20%. China's Shanghai Composite index turned negative in early trade, last seen 0.4% lower.

A SGX CNX Nifty Index future for September delivery was up 28.5 points at 7,808. Indian market is likely to open in positive. Going forward, this week shall be volatile due to Fed meeting on Sept. 16-17.