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Negative Nifty opening likely on weak Chinese market

Mainland China equities lost 2 percent in early trade on Monday while the Dow futures tanked 200 points on reports that Beijing may finally halt its controversial market intervention.

The Indian equity market is expected to open in the red today with the SGX Nifty trading at 7981.50, down 38 points at 7:45.

Global cues are mixed with Asian markets kicking off the first trading day of the week lower on expectations of more volatility in Chinese markets.

Mainland equities lost 2 percent in early trade on Monday while the Dow futures tanked 200 points on reports that Beijing may finally halt its controversial market intervention.

The US market ended narrowly mixed on Friday on the back of a sharp rebound in crude oil and good economic data.

US Federal Reserve Vice Chairman has said in an exclusive interview that the Fed has not yet made up its mind about hiking interest rates in September. Fischer said the Fed will watch the non-farm payroll numbers and also if the volatility in the market is settling down.

Back home, credit growth slumped to single-digits in the first three months of this fiscal. Reserve Bank data shows growth is at its lowest level in the last 20 years.

In macro data to watch today, gross domestic product (GDP) is expected to come in at 7.5 percent  well above the 6.7 percent  last year in Q1. But economists are now watching the Gross Value Added (GVA) and that is expected to fall to 6.81 percent from 7.4 percent in the year ago first quarter.

Prime Minister Narendra Modi said he will let the land ordinance lapse today, adding that the govt is open to suggestions on Land Bill and that they are ready to amend land acquisition act to benefit farmers.

And RBI Governor Raghuram Rajan told CNBC in an exclusive interview that he is not done with cutting rates yet and that he will follow the data to see how much action is possible.

Furthermore, Finance Minister Arun Jaitley said the RBI and the government are on the same page with respect to the monetary policy committee.

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