Pre Open Thoughts: Subdued Opening!!

Pre Open Thoughts: Subdued Opening!!

Ø Many people are in the dark when it comes to money, and I'm going to turn on the lights. You can take some comfort from the fact that the Indian indices have been showing resilience. The trend is likely to stay intact for some time now till nifty hold 5300.

Ø The ball was in the Government’s court to clear the air surrounding this thorny issue and restore investor confidence, now it has finally understood the gravity of the issue on GAAR and there is a likely possibility that Govt is going to Abolished tax on all capital gains, short term or long term, only for FIIs, Retain GAAR as it is & Raise STT to 15bps on cash market transactions and these budget amendment motions is likely to be presented on 30th April.

Ø With IIP, monthly Inflation, RBI monetary policy is also out of the way, FII inflows have gained some traction lately in back of this.

Ø Though given the global economic backdrop is bleak, Medium-to long-term investors could look at quality stocks in Indian Markets at lower levels.

Ø Coming back to today’s session another subdued opening is in store. Overseas cues are mostly negative. US stocks dipped in choppy trade on Thursday as investors grappled with uncertainty in the euro zone, a raft of corporate earnings and economic data that painted a mixed picture of the domestic recovery.The overall undercurrent still remains shaky and fragile.

Ø The FIIs were net sellers of Rs 1.02bn in the cash segment on Thursday while the domestic institutional investors (DIIs) were net buyers of 1.01bn, as per the provisional figures released by the NSE.

Ø Markets will keenly watch out for earnings of heavyweight, RIL. The oil & gas major is expected to report a fall in profit in the second consecutive quarter after production from its KG-D6 fields slowed and refining margins shrunk going forward too Qtrly results will continue to drive sentiment.

Ø Larsen will be in focus as the CAG has rapped state-run Cidco for extending undue benefits of 4.64 billion rupees to Larsen & Toubro on incomplete development of an integrated complex at the Seawood railway station in Navi Mumbai.

Results Today

RIL, Cairn, Mastek and Merck

Global Data Watch:

G20 Meeting, Germany Producer Price Index (MoM) and (YoY) (Mar), Germany IFO Expectations (Apr), IFO Business Climate (Apr), IFO Current Assessment (Apr), UK Retail Sales (MoM) and (YoY) (Mar).