Opening Bell: Cues that may drive Nifty today - Moneycontrol.com

The 30-share BSE benchmark closed Monday with 347.50 points loss amid concerns over US debt ceiling. However, the positive was that September month ended with 760-point gains led by foreign liquidity, Raghuram Rajan's measures to revive economy and Fed's decision to continue bond buying programme.

The Sensex closed at 19379.77, down 1.76 percent from previous close while the Nifty fell 97.90 points or 1.68 percent to 5735.30 on Monday.

CAD concerns

The current account deficit (CAD) widens to 21.8 billion dollars in the first quarter of the fiscal. Imports surge at a 4.7 percent pace during the quarter, while exports decline by 1.5 percent.

Petrol price cut

As we reported first, after 7 successive petrol price hikes, there is finally relief- oil marketing companies cut petrol prices by Rs 3 but hike diesel prices by 50/paise a litre.

US Markets

US markets finished sharply lower as the budget impasse in Washington threatens the first government shutdown in nearly 17 years, but major indices still capped a rocky month and quarter with robust gains.

The Dow Jones lost nearly 130 points to close lower for the seventh session in the last 8 days. The yield on the 10-year treasury remains almost unchanged at 2.6%. The CBOE volatility index  jumped to near 17 levels. For the month, the Dow rallied 2.16 percent, the S&P 500 jumped 2.97 percent, and the Nasdaq soared 5.06 percent.

US lawmakers are locked in a war of wills that threatens to shut down the Government around 9: 10 am (IST). The senate wants a clean bill to continue funding the government while the house wants it tied to Obamacare.

European Markets

European markets closed lower with the Italian index leading the fall, after a series of Cabinet resignations that could trigger fresh elections. The Italian markets did recover from sessions lows on reports that Berlusconi's centre-right party could rebel if he continues to threaten to bring down the government. Stocks were also sent lower as a possible US Government shutdown becomes ever likely.

In commodities, crude trends lower marking its first monthly decline since may, as a looming US Government shutdown clouded the outlook for demand while tensions over Iran continued to ease.

From precious metals space, gold prices are a little weak but were heading for their best quarterly performance in a year, despite fading support from a possible US Government shutdown, but the outlook remained weak due to the inevitable tapering of monetary stimulus.

Asian Markets

Equity markets in Asian enjoyed a modest rebound on Tuesday but investors remained on tenterhooks on the back of a likley US government shutdown. Japan's Nikkei and South Korea's Kospi were both rallying while Australia's S&P ASX 200 traded flat.

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