The
key domestic benchmarks are likely to open on a flat note ahead of the expiry of
the November F& O (futures & options) contracts and weakness in most
fellow Asian stocks. Markets may witness heightened volatility today as traders
roll over their positions in November derivative contracts. Asian markets were
trading mostly lower today even as US indices closed at fresh highs overnight.
While China’s Shanghai Composite extended a rally as insurers advanced, Hang
Seng fell and Japan’s Nikkei 225 was trading lower as a stronger yen dimmed the
appeal of exporter stocks. Caution ahead of the Q2 GDP data expected to be
released tomorrow may weigh on sentiment with growth in Asia’s third biggest
economy likely to have slowed to 5 per cent, year on year in the July-September
2014 quarter from 5.7 per cent in Q1. Investors are also eying the RBI’s
monetary policy meet on Tuesday with pressure building up on the central bank to
cut interest rates.
