Markets to open in green; October Auto sales eyed

Indian markets would open for trading for the first time in this new Samvat year. After remaining range bound for major part of the last week given the global equity markets and domestic developments, markets delivered negative returns. However, markets traded for a short while on account of Mahurat Trading on the auspicious occasion of Diwali on Sunday, October 30. Nifty closed at the levels of 8625; whereas BSE Sensex closed near 27900 on Sunday.

European stock markets closed sharply lower for sixth straight day led by fall in energy prices and developments related to US Presidential elections on Monday, October 31. All the major indices closed with the losses of more than half a per cent.

US stock markets remained in a flattish trajectory after sharp reactions in the previous week given US Presidential elections. All the benchmark indices closed with negligible losses.

Asian stock markets saw a subdued opening with mixed reactions owing to Bank of Japan’s policy and subsequently FOMC meet. After sharp fall in yesterday’s trading sessions markets paused in early trade on Tuesday, November 1, 2016.

SGX Nifty is trading with gains of 0.29 per cent to the levels of 8629. We expect markets to open higher and remain range bound for the day. October Auto sales numbers, economic data and US elections would be keenly watched in the coming week.