The markets are likely to start on a positive note after the Income Tax Department on Monday put on hold all fresh notices to foreign institutional investors (FIIs) over minimum alternate tax (MAT) related issues. Reports also suggest that the recovery of demands aggregating about Rs 603 crore might not be pursued.
The gains, however, could be capped after a 400-point rally on Monday and also seeing the muted trend in other Asian markets on Tuesday. Also impacting sentiment will be the consumer price index data to be unveiled later in the day today.
The S&P BSE Sensex closed 402 points higher at 27,507 and the Nifty had settled higher by 133 points at 8325 in Monday's session.
On the global front, the US stocks slipped overnight after the Eurogroup meeting. Asian stocks edged lower as insufficient progress on talks between debt-strapped Greece and its creditors kept investors on edge. Japan's Nikkei 225 index was trading 0.76% lower at 19,471, Hong Kong's Hang Seng index was trading 0.31% lower at 27,630, while China's Shanghai index was trading 0.66% higher at 4,362 on Tuesday.
Investors will keep a close eye on the macro data which will be unveiled later in the day. The government will unveil data on inflation based on the consumer price index (CPI) for April 2015 later today.
On macro front, the government will unveil data on inflation based on the consumer price index (CPI) for April 2015 tomorrow, 12 May 2015. The all-India general CPI inflation slowed down to three months low of to 5.2% in March 2015 from 5.4% in February 2015. On the same day, the Index of Industrial Production (IIP) data for March 2015 will also be released. IIP increased 5% in February 2015 compared with the revised growth of 2.8% in January 2015.
Meanwhile, proceedings in parliament are being keenly watched. The government today, 11 May 2015 reportedly decided to send the controversial land acquisition bill to the joint committee of Parliament in view of continued opposition to the proposed legislation, it remains to be seen if the government is able to pass the Land Acquisition Bill during the ongoing Budget session.
“Going ahead, we believe that more buying could emerge at lower levels, thus, the investors are advised to use this opportunity to build a defensive portfolio by accumulating fundamentally strong counters,” said Jayant Manglik, President-retail distribution, Religare Securities.
Care rating, Motherson Sumi, TBZ, TV Today, Sobha, NilKamal, Central Bank, Finolex Cables, Dr Reddy's Labs, Torrent Power, Central Bank, Vijaya Bank, Jubilant, Apollo Tyre and Ashok Leyland are some of the companies likely to announce their March quarter earnings today.
"Technically, however, despite markets travelling thus far in the last couple of days, bears and bulls are similarly poised to strike next, with the Nifty being at a critical level of 8360. The 8800-7780 view could back into the radar, if the present short covering rally finds 8360 too stiff to overcome. Alternatively, direct rise above 8414 could signal vertical rise towards 8900 levels," said Anand James, co-head of technical research desk at Geojit BNP Paribas in a note.
No comments:
Post a Comment