Markets are likely to open flat with a positive bias tracking firm Asian cues.
Steep weekly falls on Wall Street pressured Asian shares on Monday, as concerns over geopolitical tensions and Argentina’s debt default eclipsed U.S. economic data that argued against an earlier start to the Federal Reserve’s rate-tightening cycle.
Japan’s Nikkei average .N225 fell 0.4 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off 0.05 percent. SGX Nifty is quoting at 7,669.50 up by 54.50 points.
The weakness in rupee is seen limited this week and currency dealers believe the depreciation may be capped at Rs 61.50 a dollar. This is because the US job growth slowed a bit in July and the unemployment rate unexpectedly rose. Currency traders believe the slow recovery could lead to the US Fed keeping interest rates low for a while. The US job data was released on Friday after market hours.
Stocks to watch
Bank of Maharashtra reported a massive 56 per cent drop in net profit at Rs 117.82 crore in the June quarter due to a steep threefold increase in non-performing assets.
Private sector Gujarat Pipavav Port is planning to invest $ 100 million (over Rs 600 crore) over the next two years to ramp up its container handling capacity by over 50%, according to top official of the company.