Markets are likely to open flat as profit taking at higher levels could cap upside gains. However, auto stocks will be in focus on the back of robust August sales. Further, metal and power stocks could extend gains after the Centre requested the apex court not to cancel permits for 46 blocks.
At 8:30AM, the early indicator, SGX Nifty was down 20 points at 8,057.
On the global front, Asian shares were trading mixed with Japanese stocks trading with strong gains on the back of a weaker yen.
The benchmark Nikkei was up 1.3% at 15,677, while shares in Shanghai Composite extended gains and were up 0.3%. However, shares in Hong Kong witnessed profit taking and were down 0.5% while Straits Times was trading marginally higher by 0.1%.
STOCKS TO WATCH
Power and metal stocks will be in action after the Centre on Monday requested the Supreme Court not to cancel the permits for 46 coal blocks that were functioning or were about to start production. The remaining blocks allotted could be auctioned, Attorney-General Mukul Rohatgi told a Bench headed by Chief Justice R M Lodha.
Cipla Ltd has launched an anti-asthma inhaler in Germany and Sweden that is a generic version of GlaxoSmithKline Plc’s Advair, a move that will further dent sales of the British firm’s top-selling product.
TVS Motor will gain after it reported a 46% increase in its total sales at 2,27,482 units in August 2014.
Hero MotoCorp, the country’s largest two-wheeler maker, may gain after it reported 21.43% jump in its total sales at 5,58,609 units in August 2014.
Tata Motors could see some weakness after it reported 17.59% decline in total sales at 40,883 units in August, 2014 as against 49,611 units in the same month last year.