Nifty and Sensex eye a muted open on subdued SGX Nifty futures

• India’s Nifty and Sensex set off the week on the wrong footing.
• Nifty and Sensex declined on a rush for profit taking and cautious trends in global markets.
• SGX Nifty futures point to a tepid start for Nifty and Sensex on Tuesday.

Futures on SGX Nifty, also known as Singapore Nifty, are trading marginally lower on the day, suggesting a tepid start for India’s benchmark Nifty 50 index and Sensex 30 index on Tuesday.

The National Stock Exchange (NSE) Nifty 50 index lost 0.76% of its value on Monday to settle at 21,616.05. The Bombay Stock Exchange (BSE) Sensex 30 finished 0.73% lower on the day at 71,072.49.

Stock market news

• Heavyweight banks, metals and mining companies were the main laggards while pharma and technology sectors helped cap the downside on Monday.
• Major gainers included Dr. Reddy’s laboratories (3.41%), Apollo Hospitals (2.80%), Wipro (2.52%), Divis laboratories (2.29%), HCl technologies (2.41%).
• Major losers included Coal India (-4.76%), Hero Motocorp (-4.37%), Bharat Petroleum Corporation (-3.32%), Oil and Natural Gas Corporation (-3.25%), IndusInd Bank (-2.56%).
• The Initial Public Offer (IPO) of Alpex Solar Limited received an overwhelming response from the investors as it recorded 303 times subscriptions till the final day of bidding.
• Rush for profit taking and mixed trends in global markets could be attributed as key factors behind the recent correction in Nifty and Sensex.
• The Indian markets have extended their lead to the highest ever over Hong Kong when it comes to daily trading volumes. While India’s benchmark Nifty was up 22% in the past year, Hong Kong’s Hang Seng eroded nearly 25%.
• On Monday, India's Consumer Price Index (CPI) Inflation declined to a three-month low of 5.1% in January but remains within the Reserve Bank of India’s (RBI) tolerance band of 4 (+/- 2)% for the fifth straight month.
• The Lunar New Year holidays in China and some of the major Asian markets could keep the liquidity thin around the Indian indices. However, traders look forward to Tuesday’s US CPI inflation report and Wednesday’s Wholesale Price Index (WPI) release from India for fresh trading impetus.
• US CPI data is likely to have a significant influence on the US Federal Reserve (Fed) interest rate path, setting the tone for global markets in the coming days.