Indian Market
The frontline Indian equity benchmarks have opened with a negative bias as they continue to consolidate in a sideways fashion in the wake of January's strong upmove. The undertone is a little cautious amid concerns about Greece's ability to avert the eurozone's maiden debt default. Also, China's inflation data released today came in higher than expected, partly due to seasonal effects. FII inflows have tapered off slightly but remain positive. Data on direct tax collection and bank credit is not encouraging though.
Shares of top Metal companies such as Tata Steel, Sterlite Industries and Hindalco are down. Shares of Hindalco have tumbled as the latest quarterly earnings report from Novelis has fallen short of consensus estimates.
Shares of IT majors Infosys and TCS are also trading lower after NASSCOM predicted a slower growth in IT exports for FY13. Also, Cognizant Technology has announced strong results for the latest quarter and has projected a 23% growth in topline.
The market breadth is positive as the Small-Cap and Mid-Cap indices have outperformed the Large-Cap peers so far. The performance of the sectoral indices on the BSE is mixed. While CD and Realty indices are the top leaders so far, IT, Metals and Teck indices are among the notable laggards.
An inside bar on Wednesday's trading session indicates indecisiveness at higher levels, with Nifty getting stuck in a range of 5300-5420. However, such sideways move in the past three trading sessions should be considered as consolidation after a big upmove. One should wait for a breakout above 5420 for initiating fresh long positions.
Global Market
The market is again turning as unpredictable as the weather even as it consolidates after a spectacular rally. The trend is likely to continue today as well as the Greek debt drama drags on and data shows faster-than-expected inflation in China. Bank of Korea has left borrowing costs steady. Japan’s core machinery orders dropped 7.1% in December.
Talking of economic stats, growth in the direct tax receipts remains slow while credit offtake too continues to moderate. Car sales for FY12 may be either flat or even tad lower. On the plus side, FII inflows are still positive while the domestic funds are more cautious.
The opening is likely to be wee bit cooler as global investors fret over Greece’s inability to seal a deal on second bailout. Asian markets are mostly down post the Chinese inflation data. US markets managed modest gains while their European counterparts finished mixed.
Lots of results are on tap today. Watch out for the outcome of the ECB and Bank of England policy meetings. But, all eyes will be on Greece as it seeks to secure more international aid to avoid a default.
Major Results Today:
ACC. Adani Enterprise, Alfa Laval, Ambuja Cements, Anant Raj, Apollo Tyres, Cummins India, Fortis Healthcare, Gammon India, GTL, GTL Infra, GNFC, GSPL, Hikal, Hindalco, HPCL, Indiabulls Securities, Jindal Saw, Jindal Stainless, JK Tyre, Kernex Micro, KRBL, Moser Baer, MRF, NDTV, Network18 Media, Page Industries, Rajesh Exports, Sundram Fasteners, Talwalkar's, Tata Steel, TV Today and TV18 Broadcast.
Outlook
Today, the Indian Markets could open marginally lower and then trade in a narrow range. During the latter half of the session, it could take cues from Dow Futures & European markets for any further direction. Immediate support for Nifty is at 5300, while resistance is at 5396 levels. Among the sectoral indices, Realty, Metals & Oil & Gas look good while Healthcare & FMCG look weak & could underperform.
Source-IIFL, hdfcsec
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