Markets to open lower; Q2 earnings eyed

In the previous truncated week, the Indian markets corrected by more than two per cent, courtesy global cues with regards to fear about Fed going in for an interest rate hike. Chinese economic data and European central banks policy meet will be closely watched for the week ahead. Benchmark indices closed in green after a volatile day of trade affected by results from IT majors on Friday, October 14. Nifty closed tad above the levels of 8575; whereas BSE Sensex closed near 27650 on Friday.

European stock markets closed sharply higher in trade on Friday, October 14. All the major indices closed with the gains of 0.5 to 2 per cent.

US stock markets remained in a flattish trajectory after a spell of earnings and economic data. All the benchmark indices closed with negligible gains.

Asian stock markets saw a subdued opening owing to mixed reactions on Janet Yellen’s remark on running a ‘high pressure’ economy. Most of the Asian indices are trading flat on Monday, October 17, 2016.

SGX Nifty is trading with losses of 0.48 per cent to the levels of 8570. Second quarter result and economic data from the world would be keenly watched in the coming week. We expect markets to open lower and remain range bound for the day. However stock specific action would be the flavour of the day.