The key domestic benchmarks may open lower today amid subdued cues from overseas markets as a surprise dip in US consumer confidence last month signaled doubts over the recovery in the world’s biggest economy, curbing the appetite for risky assets. The Sensex may witness profit booking ahead of holidays from October 2 through October 6. The RBI’s decision to maintain status quo on interest rates may cause selling pressure in rate sensitive stocks. The central bank refrained from an interest rate cut, keeping its key repo rate unchanged at 8 per cent as it warned of an upside risk to its medium-term inflation target. Investors may also exercise caution ahead of HSBC India manufacturing PMI for the month of September which will offer the latest snapshot of health in Asia’s third biggest economy. The index stood at 52.4 in August, with a reading above 50 signaling expansion in manufacturing over the previous month. While markets in mainland China and Hong Kong were shut for holidays, Japan’s Nikkei 225 rose as business sentiment improved in the quarter ended September.
