Markets may open in negative terrain as CPI inches higher

Indian markets may open flat to slightly lower on Tuesday as the cues from global bourses are mixed. The SGX Nifty suggests that Nifty could open with a loss of 20 points around 10,242 at the opening bell.  

The CPI inflation for the month of October 2017 came in at 3.58%, about 30 basis points higher than the September levels. This may not be good news as it almost rules out any possibility of a rate cut.  

The stocks of companies like Bank of Baroda, Bata India, Cadila Healthcare, CEAT, Eicher Motors, Godrej Industries, Grasim Industries, GAIL, Indiabulls Real Estate, JP Associates, JK Tyres, MRPL, MOIL, NBCC, Reliance Capital, Tata Global Beverages and Sun Pharma will be in focus today as these companies are expected to announce earnings today.   

Most of the Asian markets are trading with moderate gains on Tuesday. Japan's  Nikkei 225 has gained 75 points, Hong Kong’s Hang Seng has surged 61 points, while China’s Shanghai Composite has slipped 12 points. 

Back home, markets ended with significant losses in the first trading session of the week. Losses in metal stocks and index pivotals HDFC, L&T and ITC weighed on market sentiments. The broader indices closed in the red as Nifty Mid-Cap and Small-Cap was down by 0.47% and 0.68%, respectively. The losses for both the indices were lower than the benchmark indices in percentage terms. At the end of the day, Nifty settled below 10,250 mark with loss of 0.94% and BSE Sensex closed at 33,034, down by 0.84%.   

The US stocks regained strength after initial setback on Wall Street, the setback partly reflecting concerns about the outlook for tax reform. The Dow Jones Industrial Average rose 17 points to 23,440, S&P 500 climbed 3 points and the Nasdaq Composite index gained 7 points to 6,758.  

European indices ended lower on Monday. The French CAC 40 index lost 0.73%, German DAX index dipped 0.41% and FTSE 100 of the UK shed 0.24%.