- Financial markets to resume trading on Wednesday, October 9
- Analysts await quarterly earnings from TCS, Infosys due this week
- Government to release industrial production data on Friday
Domestic financial markets will remain closed on Tuesday on account of Dussehra (Vijayadashmi). Trading in the equity, debt and currency markets will resume on Wednesday, October 8. Equity market benchmark S&P BSE Sensex closed 141.33 points - or 0.38 per cent - lower at 37,531.98 on Monday, whereas the broader NSE Nifty index declined 48.35 points - or 0.43 per cent - to 11,126.40, extending their losses to a sixth session in a row. Analysts will closely monitor quarterly earnings reports from IT majors Tata Consultancy Services (TCS) and Infosys as well as official macroeconomic data this week for cues. (Also read: Dussehra 2019 - President Kovind, PM Modi Greet Nation)
TCS will kick off the earnings season by reporting its financial performance in the September quarter on Thursday. Infosys will post its results the next day. The government is due to release data on industrial production on Friday.
The rupee dropped by 14 paise to end at 71.02 against the US dollar on Monday, amid profit booking in domestic equities and unabated foreign fund outflows. The 10-year government bond yield declined to 6.68 per cent from 6.69 per cent the previous day. Market sentiment remained fragile ahead of the US-China trade meeting, say analysts.
US and Chinese deputy trade negotiators launched two days of talks on Monday aimed at paving the way later this week for the first minister-level negotiations in months.
The bilateral talks are getting underway ahead of a scheduled increase in US tariffs on $250 billion worth of Chinese goods, to 30 per cent from 25 per cent on October 15. US President Donald Trump has said the tariff increase will take effect if no progress is made in the negotiations.
Foreign institutional investors offloaded a net Rs 494.21 crore from the Indian capital markets on October 7, according to provisional data from the National Stock Exchange (NSE).
"The market is not having enough strength to sustain at higher levels... By pushing the Nifty below the level of 11,140, bears have disturbed the bullish momentum," said Shrikant S Chouhan, senior vice-president-equity technical research, Kotak Securities.
The Sensex has lost 1,457.76 points in six consecutive sessions, marking a decline of 3.74 per cent, and the Nifty given up 444.8 points - 3.84 per cent.
"The Nifty is heading for the levels of minimum 11,050 and maximum could be 10,850. On the higher side 11,240 would be hurdle for the index," Mr Chouhan added.
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