Sensex, Nifty to open on a flat note

The F&O expiry will also be in play on Thursday and market players may look at making adjustments in their positions. A sharp increase in VIX was seen on Monday. The rollover has been one of the weakest with just two sessions left for expiry. The Dow fell 0.17%, S&P 500 shed 0.12% and Nasdaq was a tad lower by 0.05%. Asian markets too are dragging in a narrow range.

The world markets are not in real good health despite one of the biggest healthcare deal being announced between Pfizer and Allergan. Both the stocks ended lower after the US$160bn deal announcement. Politicians view this mega deal as a ‘tax dodge,’ and the street seems to be unimpressed by the benefits or cost savings both companies would derive following the deal. Back home the consumer discretionary, consumer durables, auto and realty indices ended with gains on Monday even as main indices saw minimal gains. In fact the mid-cap and the small-cap indices managed to outperform the benchmarks. On the other hand, FMCG, metals and telecom indices were under pressure.

The outlook is a flat start ahead of a holiday. The F&O expiry will also be in play on Thursday and market players may look at making adjustments in their positions. A sharp increase in VIX was seen on Monday. The rollover has been one of the weakest with just two sessions left for expiry. Nifty rolls stood at 41 % (6-month average of 42%); in terms of shares, rolls stood at 1.12mn shares as against 6-month average of 1.03mn shares.  Surprisingly, BankNifty rolls are at 29% (as against 32% 6-month average) with cost of carry dipping to 51bps (6 months average of 67bps). Maruti Suzuki will remain in spotlight as it has seen 27% rollover;​much lower than its 6-month average of 45%. The currency movement will also be at play after the rupee plunged and dollar index rose to an eight-month high of 100.

Global cues are subdued. The Dow fell 0.17%, S&P 500 shed 0.12% and Nasdaq was a tad lower by 0.05%. Asian markets too are dragging in a narrow range.

Tata Steel is planning raise at least $1.5 bn to refinance its debt, according to reports.

Maruti Suzuki on Monday dismissed proxy advisory firm Institutional Investor Advisory Services’ (IiAS) recommendation asking the carmaker’s shareholders to vote against the proposal of setting up a plant in Gujarat by Suzuki Motors Corp.

MRF has received the formal approval from the Telangana government to set up the manufacturing facility.

Healthcare Global Enterprises Ltd (HCG), a cancer care network operator, has received SEBI’s approval to float an initial public offer (IPO).

Cement prices have been hiked by Rs. 70 per bag in Andhra Pradesh and Telangana in the last couple of weeks, according to a business daily.

Warburg Pincus, a leading global private equity firm focused on growth investing,  announced it has successfully raised its latest global fund, Warburg Pincus Private Equity XII, L.P. (“Warburg Pincus XII”). Launched in May 2015, Warburg Pincus XII has received third party commitments significantly in excess of its $12 billion hard cap.

The finance ministry has invited seven merchant bankers to make presentation on Coal India's divestment, according to reports. The merchant bankers are Axis Capital, HSBC Securities and Capital Markets, Kotak Mahindra Capital, Edelweiss Financial Services, SBI Capital Markets, J.M. Financial Institutional Securities and ICICI Securities.