Nifty to Open on a Flat Note; Eicher Motors to be in Focus

Nifty is likely to open on a flat note in trades on Thursday as indicated by the Nifty which is traded on the Singapore Stock Exchange. 

The Nifty which is traded on the Singapore Stock Exchange commonly known as the SGX Nifty was trading 7 points or 0.09 per cent higher at 8,150.

In the last two trading sessions, the Sensex and Nifty have plunged over 3.5 per cent each. The selloff was triggered after the market participants interpreted from the Reserve Bank of India's commentary that going ahead chances of another rate cut in the current calendar year remain bleak as monsoon uncertainty poses upside risk to inflation. The RBI also slashed its growth forecast for FY16 to 7.6 per cent from 7.8 per cent earlier.

Expectations of weak monsoon rains weighed upon the investor sentiment. India's weather department has said that monsoon rains are likely to be 88 per cent of the long period average compared to its earlier projection of 93 per cent. Weak monsoon rains would mean that the agriculture produce will be lesser which would lead to spike in inflation.

Meanwhile, Japan's Nikkei and South Korea's Kospi both gained 0.3 per cent, while Australian shares added 0.2 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed.

Overnight, U.S. stocks rose on Wednesday, helped by optimism that Greece was close to an agreement to avoid default and as further gains in bond yields lifted financials.

The Dow Jones industrial average rose 64.33 points, or 0.36 per cent, to 18,076.27, the S&P 500 gained 4.47 points, or 0.21 per cent, to 2,114.07 and the Nasdaq Composite added 22.71 points, or 0.45 per cent, to 5,099.23.

Back home these shares will be in focus today:

Eicher Motors: Volvo will exit Eicher Motors by selling its remaining 3.7 per cent in the company. Earlier, Volvo had sold 4.7 per cent stake in Eicher Motors. Meanwhile, Volvo will be selling 1 million shares via block deal in trades today in a price range of Rs 17,190 - 18,190. 

ICICI Bank, IRB Infra and Page Industries: All these shares will go ex-dividend today.

Sundaram Finance: Competition Commission of India has cleared Sundaram Finance's additional stake buy in Royal Sundaram.

L&T Finance: L&T Finance plans to raise Rs 750 crore on private placement basis via non-convertible debentures.

Bharti Airtel: Bharti Airtel plans to raise Rs 3,200 crore by selling bonds.

(With inputs from Reuters)