Pre Open Thoughts: Without A Clue!!!
Ø We should all relax about life because you don't have a
clue as to what's really going on. The indices are running backwards & the
colour Red may dominate the Street for now. We expect market players to remain
cautious in light of the uncertainty over GAAR issue, though the Government is
trying to do its best these days.
Ø Next week will be important for India as the Parliament
takes a final call on the Finance Bill, including the controversial GAAR issue.
IIP data is due on May 11.
Ø One can only hope that at least some of the troubles do a
vanishing act before hitting our shores. Trading won’t be easy as volatility
will remain elevated while uncertainty will prevail over macro-economic
conditions.
Ø The start is likely to be flattish. Asian markets are
indecisive. US stocks finished in the red while European markets ended mixed.
Ø The lofty targets for the main indices can be kept aside
for now. Wait for more clarity on the macro-economic environment before taking
a secular ‘buy’ call. The political backdrop too is not very conducive at the
moment.
Ø On Global front ECB has left rates unchanged and President
Mario Draghi has refused to give any hints on further policy easing.
Ø Meanwhile The RBI likely sold some dollars in the foreign
exchange market at around 53.45 rupee level. We all know the current account
deficit problem, the trade deficit problem. Even seasonality is bad during this
period of the year and we need FII flows, but FII flows have dried down over
the past month
Ø RIL will be in focus on reports of it being penalised for
drop in KG basin gas output. The company has so far spent ~5% of money
earmarked for share buyback.
Results Today:
Bank of Baroda, Corporation Bank, DB Corp, Gillette India, IL&FS
Transportation, NIIT Tech, Tata Teleservices Maharashtra, TTK Prestige and
Venus Remedies.
Global Data Watch:
Australia RBA Monetary Policy Statement, HSBC China Services PMI (Apr), Germany
Services PMI (Apr), EU Services PMI (Apr), EU Retail Sales (Mar), US Nonfarm
Payrolls (Apr), US Unemployment Rate (Apr) and US Fed’s William Dudley speech.
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