Pre Open Thoughts: Lack of Confidence!!!

Pre Open Thoughts: Lack of Confidence!!!

Ø Drugs are not always necessary, but belief in recovery always is. Self belief and conviction appear to be in short supply – when it comes to Government. The same also could be said of investors, some of whom have badly burnt their fingers in the recent collapse. But, we may see some stability today after the turmoil and extreme volatility.

Ø A recent poll survey suggest that the Reserve Bank of India is likely to cut its repo rate for the first time in three years in an attempt to lift sagging economic growth, even as high oil and food prices remain a challenge to managing inflation.

Ø However, overseas investors still seem to be missing from action. FIIs continue to be net sellers of Indian equities from last couple of sessions. For India, the biggest concern is the continued uncertainty over the proposed GAAR provisions. FII inflows have turned negative. In fact, even trading volume has taken a hit this month. The ball is in the Government’s court to clear the air surrounding this thorny issue and restore investor confidence

Ø Earnings growth may not be scorching in the coming quarters given the moderation in the economy. Some uncertainties will prevail in the near term though. Therefore, one needs to be very choosy and guarded. Infosys results are slated for Friday as well. RBI’s policy meeting will be the important event next week.

Ø Technically nifty is delicately posied at 5200 level it may face resistance at 5320-5350 levels on the upside while the support remains to be at 5200.

Ø The FIIs were net sellers of Rs 3.28bn in the cash segment on Tuesday while the domestic institutional investors (DIIs) were net sellers of ~Rs 1.9bn, as per the provisional figures released by the NSE.

Financial Events in April:

v 11th April: Supreme Court to hear Chidambaram Petition in 2G Case.

v 12th April: February Industrial Production YoY

v 13th April: Hearing on GoI Plea in 2G Licence cancellation case;
Supreme Court Hearing on Karnataka Mining
Results: INFOSYS
Monthly Wholesale Prices YoY%

v 16th April: Results: Mindtree, CRISIL, Castrol,

v 17th April: Hearing of Vodafone Transfer Pricing Case in Bombay High Court;
Monetary Policy Statement 2012-13; India REPO Cut off Yld;
Cash Reserve Ratio; Reverse Repo Rate
Results: VST Industries, Goa Carbon, SKF India

v 18th April: Results: CMC, HCL Tech

v 19th April: Results: ACC, IndusInd Bank

v 20th April: Results: Mastek, Cairn India

v 21st April: Hearing of the Ruia’s Case

v 22nd April: Results: Persistent Systems

v 23rd April: Results: TCS, Noida Toll Bridge

v 25th April: Results: Wipro, India Cements
AGM: HeidelbergCement
EGM of AB Nuvo, to Issue 1,65,00,000 Warrants to Promoter / Promoter Group on preferential allotment basis;

v 26th April: Results: Bata, Kirloskar Industries, Kirloskar Oil, Agro Tech Foods, Vesuvius India

v 27th April: Results: ICICI Bank, AXIS Bank

v 28th April: Results: Maruti

v 30th April: TITAN, Godrej Consumer, Dabur