Indian shares likely to rise at the open: Five key facts to know

After the historic fall in the Indian stock market on Monday, will sanity return today? According to experts, Indian shares are likely to open up today. On Monday, the BSE Sensex and Nifty slumped nearly 6 percent, posting their biggest daily falls in absolute terms since January 2009. The rupee also fell, hitting its weakest since early September 2013. While the market is set to open here is a look at key factors you need to know: [caption id=“attachment_2406514” align=“alignleft” width=“380”]  Reuters[/caption] 1) The US markets closed on Monday nearly 4 percent lower, the steepest fall in four years. The Dow Jones industrial average briefly slumped more than 1,000 points, its most dramatic intraday trading range ever. The index closed down 588.4 points, or 3.57 percent, at 15,871.35. The S&P 500 lost 77.68 points, or 3.94 percent, to 1,893.21. 2) Asian shares, sans Chinese, have bounced back in early trades today. According to a Reuters report, at the open Asian stocks looked vulnerable to another sell-off. But the trend saw a reversal soon. Japan’s Nikkei index fell 3.8 percent to six-month lows at the open, but has bounced back and now is up 1 percent. Indonesia’s Jakarta Composite Index is up 3.11 percent; Taiwan Weighted Index 3 percent, Nikkei 1.1 percent, Striata Times Index 2.63 percent. Shanghai Composite Index is down nearly four percent. 3) If the trend in the SGX Nifty, the futures traded on the Singapore Stock Exchange that opens before Indian stock markets open, is any indication, there is likely to be a bounce back in the Indian markets too. At 08:05 am, the SGX Nifty was at at 7914, up 118 points. 4) But is this a short covering rally? Vivek R Mishra of Scociete Generale told CNBC-TV18 that in the time of volatility like these, short rallies and declines are bound to take place. He sees selling pressure coming back even if there is a rebound today. He, however, said it is difficult to predict what lies ahead. 5) Reserve Bank Governor Raghuram Rajan has allayed fears citing strong macroeconomic fundamentals of the country which are much better than many others. “I wish to reassure the markets that our macroeconomic factors are under control as the economy is in a much better position relative many other economies,” Rajan said on Monday. Though the rupee is expected to tumble further, expectations are the RBI will intervene at the lower levels to support the currency. The rupee is seen moving in the 66-67 range today.