Nifty, Sensex may open with jump on global, Asian cues today; RBI MPC, IPOs to set market tone this week

After a volatile week, Monday could start on a positive note for domestic equity benchmarks BSE Sensex and Nifty 50 with the SGX Nifty gaining 76.35 points during the early hours of trade. Market participants will track a host of factors such as RBI monetary policy, car sales number for September, macroeconomic data and other global cues in this holiday-shortened week. Besides, investors will keep tabs on the Supreme Court’s announcement on interest on interest waiver. Headline indices ended the previous week down 3.8 per cent. Analysts believe that any additional economic stimulus package from the government’s stable would bring about cheer on Dalal Street.

SGX Nifty in green: Trends on SGX Nifty suggested a positive opening for Sensex and Nifty on Monday. Nifty Futures were trading 0.69 per cent higher at 11,108.20 on Singaporean Exchange.

RBI’s monetary policy: The six-member Monetary Policy Committee (MPC) headed by RBI Governor is scheduled to meet for three days starting September 29. The resolution of the MPC would be announced on October 1. In its last MPC meeting in August, RBI kept policy rates unchanged.

September auto sales: Auto sales numbers for the September month would be among the key events for investors this week. With better month-on-month sales every passing month, the passenger vehicles and two-wheeler segment sales showed signs of improvement in August.

3 more IPOs lined up: Three more companies, UTI AMC, Mazagon Dock Shipbuilders and Likhitha Infrastructure, are set to launch initial public offerings (IPOs) this week. All these three IPOs will open for subscription from September 29 to October 1, 2020.

FII and DII data: On Friday, foreign institutional investors (FIIs) offloaded shares worth Rs 2,080.21 crore, whereas domestic institutional investors (DIIs) bought shares worth Rs 2,070.63 crore on a net basis, according to the provisional data available on the NSE.

Global markets: Asian stock markets were trading higher in early trade on Monday. Japan’s Nikkei gained 0.7 per cent, Hong Kong’s Hang Seng was up 0.33 per cent, and Korea’s Kospi surged 1 per cent. In overnight trade on Wall Street, the Dow Jones Industrial Average rose 1.34 per cent, the S&P 500 gained 1.60 per cent and the Nasdaq Composite added 2.26 per cent.