Pre Open Thoughts: An Uneasy Calm!!!

Pre Open Thoughts: An Uneasy Calm!!!

Ø  Concern for someone else was a good remedy for taking the mind off one's own troubles. An uneasy calm seems to be in the air even as markets continue to grapple with multitude of problems. The eurozone debt crisis in particular remains the biggest bugbear.

Ø  The only positive as of now is that the US economy remains resilient. For India too, the headwinds are pretty familiar. So, one should continue to adopt a ‘wait and watch’ approach in the interim. Earnings will be tracked closely and so will be the commentary from India Inc. honchos.

Ø  The opening today is not so grim. We could see red on the screen early on as most Asian indices are trading down this morning. The US markets finished flat. European stocks ended higher though.

Ø  The rupee remains under threat on deteriorating external balance despite the RBI’s attempts to cap its losses.

Ø  This week is crucial as the Government will announce the latest inflation data. Though India's industrial output unexpectedly fell in March for the first time in five months, driven by a slump in the capital goods sector, and increasing the pressure on policymakers to consider further steps to revive a sagging economy.

Ø  The Nifty is currently trading below the psychological support of 5000 and  closed below 4950.  On break of 4900 we feel it could take it down to 4750-4800 in the near term.

Ø  State-run oil marketing firms will be in focus (Indian Oil, Hindustan Petroleum and Bharat Petroleum) as they plan to raise petrol prices by 8 rupees per litre after the end of the budget session of Parliament this month, and revise them every fortnight to recover 5,000 crore past revenue losses as they haven't increased rates since December due to political pressure.

Results Today:

Larsen & Toubro, JSW Steel,Ashok Leyland, Indraprastha Gas,Adani Ports and Special, Adani Power, IVRCL ,Eicher Motors, Chennai Petroleum, Orchid Chemicals & Pharmaceuticals, Maharashtra Seamless, K.S. Oil, Indos Tech Transformers, Srei Infrastructure Finance, Mcnally Bharat Engineering, Everonn Education, Dolphin Offshore Enterprises, Havells India, Lovable Lingerie, Uflex.

Global Data Watch today:

Australia Home Loans (Mar), Australia Investment Lending for Homes (Mar), EU Industrial Production (Mar) and Germany wholesale price index (April).