Sensex, Nifty to open on a flat note

August fiscal deficit data and auto monthly sales numbers are among the other data points to watch out for this week. Although consensus is a cut in repo rate by at least 25 basis points, market’s focus will be more accentuated on the stance which Mr Rajan endorses.

Welcome to another truncated week. A pullback on the last two days of the previous week failed to rescue the Indian indices which ended over a percent lower. Some attention is now on the Prime Minister who is touring US. World has started to believe that 21st century now belongs to India, Modi said minutes ago. India now has the institutions, incentives and interest for new ventures, Modi said at an event in California on Sunday. The difference between perception of something as a challenge or an opportunity is the difference between inertia and initiative; status quo and progress, Modi said. Indian investors will hope the status quo changes for good as the government seems to be grappling with a host of issues in kick-starting new initiatives.

The outlook is a flat start. With no major triggers in store, the market will stay tuned to RBI policy scheduled on Tuesday. August fiscal deficit data and auto monthly sales numbers are among the other data points to watch out for this week. Although consensus is a cut in repo rate by at least 25 basis points, market’s focus will be more accentuated on the stance which Mr Rajan endorses. The language of the central bank will determine the broader trajectory. We expect a rate cut accompanied with a cautious outlook, considering that adverse impact of poor monsoon has not been yet quantified. In addition, RBI will also have an eye on Fed, wherein the dust has not settled down on the possibility of hike in US interest rates.

Asian markets are mixed with Nikkei in the red while HangSeng is positive. Wall Street ended flat on Friday as selloff in biotechs offset gains in banking shares. The Dow Jones industrial average rose 113.35 points, or 0.7 per cent, to 16,314.67. The S&P 500 lost 0.9 points, or 0.05 per cent, to 1,931.34 and the Nasdaq Composite dropped 47.98 points, or 1.01 per cent, to 4,686.50.

During the week gone by, RIL market cap fell by Rs. 18,523.8 crore to Rs. 2,71,347.84 crore. Coal India market-cap crashed by Rs 15,443.51 crore to Rs. 2,01,239.37 crore while ONGC saw Rs. 9,582.14 crore getting wiped off as its market cap fell to Rs. 1,94,551.85 crore.

HDFC market cap fell by Rs. 4,594.39 crore to Rs 1,86,274.28 crore. Sun Pharma market cap was down by Rs 3,320.88 crore at Rs 2,14,485.67 crore. The ones which gained include Infosys which saw its market-cap rise by Rs 8,418.3 crore to Rs. 2,62,173.26 crore. TCS was also a gainer and saw its market cap rise by Rs. 4,201.47 crore to Rs 5,04,489.98 crore.

ITC market was up by Rs 3,429.02 crore to Rs. 2,58,974.86 crore while HDFC Bank gained Rs 635.58 crore to Rs 2,64,485.83 crore.

The foreign exchange reserves surged by $631.5 mn to $352.02 bn in the week to September 18 due to rise in foreign currency assets, according to RBI data. In the previous week, the reserves had jumped by a healthy $2.358 bn to $351.389 bn.

Isuzu Motors plans to source components from India and is working with vendors who are supplying parts for its Indian operations. “There is a huge potential for local sourcing, and those who supply us with parts here are candidates for supply to our worldwide operations,” said Shigeru Wakabayashi, Deputy Managing Director, Isuzu India.

Trade unions in Kerala's plantation sector will launch an indefinite strike on Monday to demand a daily wage of INR 500 after talks with the state government fell through on Saturday. The Plantation Labour Committee (PLC) represents the managements of tea, cardamom, rubber and other plantations.

ITC is expecting nearly three-fold jump in turnover of its agri division to INR 18,000 crore in the next five years. ITC expects the agri business division to have a turnover of INR 6,500 crore in the ongoing fiscal year, up from INR 5,672.07 crore in the previous fiscal year.  A majority of the business is generated from ITC's 'e-Choupals', a web-enabled supply chain network in villages and rural hypermarts 'Chaupal Sagars'.

Zuari Group is set to have three seats on the Board of Mangalore Chemicals & Fertilizers Ltd. (MCFL) after gaining controlling stake in the United Breweries Group promoted fertiliser company. Three nominees of Zuari group have been nominated for the election in the upcoming AGM are - Akshay Poddar, Kapil Mehan and myself, Zuari Gloabal MD N. Suresh Krishnan has been quoted as saying.

Reliance MediaWorks sold 29.1 million shares (9.74%) in Prime Focus at Rs. 52 a share for a total consideration of Rs. 151.30 crore through open market transactions, according to BSE data.

Sun Pharma Advanced Research Company Ltd announced that the U.S Food and Drug Administration (USFDA) has issued a Complete Response letter (CRL) to its New Drug Application (NDA) for Elepsia XR (Levetiracetam extended-release tablets 1000 mg and 1500 mg).

Alchemia Limited has announced that it has entered into a binding term sheet for the sale of the worldwide exclusive intellectual property rights to fondaparinux sodium, its generic anti-coagulant drug, to Dr Reddy's Laboratories.

Bajaj Auto is planning to begin exporting its quadricycle, christened as Qute, across various global markets, according to reports.

Report says that the four-wheeler mini passenger vehicle, would be launched as Bajaj 'Qute' in 16 markets in Latin America, Africa, Europe and Asia at price of around $2000.

Indian Oil Corp is planning to invest R.s 1.5 lakh crore, including Rs 50,000 crore for expanding existing brownfield refineries, in the next five to seven years, according to reports.Report says that the company has planned expansion of 10 refineries, infrastructure and other facilities, IOCL Chairman B Ashok added.

Petronet LNG Ltd has received shareholders approval to raise Rs 1,000 crore through bonds this fiscal, according to reports.

Facing a huge shortage of 10 million tonnes (MMT), pulses prices may shoot up further by as much as 10-15 per cent in the ensuing festival season, exerting prices on food items, an ASSOCHAM study has indicated.