Market Ahead, October 1: Top factors that could steer markets this week

Top headlines for the day-- >> Centre to borrow Rs 2.68 trillion in the second half of 2019 >> Saudi Arabia assures Reliance, it will supply committed crude oil in Oct >> Sebi, Ministry of Corporate Affairs plan to turn up heat on rating firms >> Core sector output worst in 52 months; MPC may cut rates to prop up growth Market cues for the day Domestic markets may see a flat to mildly higher start on Tuesday as investors could react to the government's assurance that it would borrow within the budgeted Rs 7.1 trillion in the current financial year, and would stick to the fiscal deficit glide path.  However, contraction of output -- from the eight core industries -- to an over 3.5 year low in Aug could cap gains. The output contracted by 0.5 per cent in Aug this year, as compared to a gain of 4.7 per cent last year. That apart, market participants would eye Manufacturing PMI for the month of September, scheduled to be released later in the day.  Also, the Reserve Bank of India's MPC will begin its three-day fourth bi-monthly monetary policy review today. That apart, auto and cement stocks will be in focus as respective companies are slated to announce their Sept sales data today. On Monday, benchmark Sensex closed with a loss of 155 points, or 0.4 per cent, at 38,667 level, while the Nifty50 settled 38 points, or 0.33 per cent, lower at 11,474-mark. Globally, Asian shares ticked up on Tuesday. Sentiment got boosted after White House trade adviser Peter Navarro dismissed reports that the Trump administration was considering delisting Chinese companies from U.S. stock exchanges. Japan's Nikkei rose 0.6 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.11 per cent. On Wall Street, US shares ended higher during the overnight trade on Monday. The Dow Jones settled 0.36 per cent higher, the Nasdaq Composite closed 0.75 per cent higher, and the S&P500 added 0.5 per cent. In the commodities market, oil prices were under pressure on fading concerns of supply shortfalls and conflicts in the Middle East. Brent Crude Futures were trading below $60 per barrel mark during the early trade. Intra-day trade recommendation by Anand Rathi Shares and Stock Brokers The brokerage recommends BUYING GODFREY PHILLIPS for the target of Rs 1,050, with a stop loss of Rs 880.