Here are the top developments:
1) Analysts say that Indian markets are likely to be volatile because of the uncertainty over US Fed rate decision on Thursday.
2) Some analysts expect the Federal Reserve to raise its interest rate amid improving economic recovery in the US. But others say that the recent turmoil in the global markets triggered by the devaluation of China's currency could force the Fed to delay the rate hike.
3) An interest rate hike in the US could accelerate the selling from foreign investors in emerging market stocks. Besides, a rate hike in the US would strengthen the dollar, putting further pressure on rupee. The rupee was trading lower at 66.38/dollar today against its previous close of 66.32.
4) Analysts also remain worried over selling from foreign investors though it has eased in recent sessions. Foreign investors sold a record Rs 16,877 crore worth of domestic stocks in August. Foreign investors bought (net) Indian shares worth Rs 58.75 in cash market on Monday - their first single-day net purchase so far this month.
5) Stocks in focus: The government on Monday imposed a 20 per cent safeguard import tax on some steel products with immediate effect. This is likely to bring steel stocks like Tata Steel and JSW steel in focus.
6) Maruti Suzuki gained nearly 2 per cent after the Reserve Bank allowed a hike in FII investment limit in the carmaker.
7) Rate sensitive stocks like banking and real estate stocks were mixed today. The BSE realty index edged up while some profit-taking was seen in banking stocks. Hopes of a rate cut from the Reserve Bank brightened after inflation dived to a new low in August, helped by falling global commodity prices.
8) Retail inflation, which the central bank tracks to set rates, eased to 3.66 per cent in August from a revised 3.69 per cent a month ago. The reading was almost in line with 3.6 per cent forecast by analysts in a Reuters poll and way below the Reserve Bank of India's 6 per cent target for January 2016.
9) Steel stocks were mixed despite the government imposing a 20 per cent safeguard duty on imports.
10) Asian shares mostly retreated Tuesday as concerns over China kept investors on edge ahead of a US interest rate decision later this week. China's Shanghai Composite slumped 2.7 per cent while Japan's Nikkei was up 1.3 per cent. Overnight, the Dow Jones industrial average fell 62.13 points, or 0.38 per cent.
