Key indices may open slightly higher as trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 22 points at the opening bell.

In overseas stock markets, Asian stocks dropped with European banking sector concerns and lower crude oil prices dulling investors' appetite for riskier assets. US stocks rose yesterday, 27 September 2016 after the first presidential debate between Democratic candidate Hillary Clinton and Republican contender Donald Trump and a number of stronger-than-expected economic reports. Stocks are rising on the prospect of a Clinton presidency because the Democrat is viewed as a known quantity while some view Trump as being more unpredictable, a bad thing for stock investors. Additionally, US consumer confidence rose to 104.1 in September, the highest level since August 2007. The Case-Shiller home price index rose 5% for the year in July, while house prices rose 0.6%. The Markit flash services purchasing managers index for September rose to 51.9 in September from 51 in August.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 155.76 crore yesterday, 27 September 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 90.67 crore yesterday, 27 September 2016, as per provisional data.

Among corporate news, State Bank of India (SBI) said that on 27 September 2016 the bank issued and allotted 25,000 AT1 Basel III compliant non-convertible, perpetual, subordinated, unsecured debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon of 8.75% per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in second tranche. The announcement was made after market hours yesterday, 27 September 2016.

Mahindra & Mahindra (M&M) said that it has agreed to acquire 1.49 crore shares or 100% of the share capital of Mahindra Two Wheelers Europe Holdings S.ar.l. from Mahindra Two Wheelers, a subsidiary of the company for Euro 26.3 million. The announcement was made after market hours yesterday, 27 September 2016. The indicative time period for completion of the acquisition is 30 days. MTWL-Europe is a special purpose vehicle to hold the investment in Peugeot Motorcycles S.A.S.

Meanwhile, key benchmark indices ended lower in a volatile session of trade yesterday, 27 September 2016. The Sensex fell 70.58 points or 0.25% to settle at 28,223.70, its lowest closing level since 29 August 2016.