Indian equity markets are likely to open slightly down, amidst weak global cues. The unexpected sharp rise in US inflation rate has put global investors in a fix. However, analysts expect Indian markets to move in a range, as they await clues from Q2 results of India Inc and the progress of monsoon, which revived this week.

The US consumer price index jumped 0.9 per cent in June, up 5.4 per cent, the highest level in 13 years. Core CPI, which excludes food and fuel prices, was up 4 per cent — the biggest annual jump since November 1991.

A Bank of America Global Fund Manager monthly survey said investors are much less bullish on growth and profits, as inflation and yield curve steepening. However, they are not unwinding their longs in stocks, commodities and cyclicals. They have unwound more junk stocks, small-cap and value stocks, and their position now back to October 2020 levels, it added.

THe SGX Nifty at 15,784 (8 am IST) signals a 50-point gap-down opening for Nifty. On Tuesday, Nifty futures on NSE closed at 15,833.80. While all the three major US indices closed overnight in the red by about 0.35 per cent, Asian markets, in the morning trade, are mixed. Australian and Taiwanese markets eked out a marginal gain even as markets in Japan, China, Korea and Hong Kong were down slightly.

Mohit Nigam, Head, PMS - Hem Securities, said: “We are bullish on markets and believe that any significant dip is a good opportunity to buy in quality stocks.”

All eyes on Infosys

Today is another big day for the result season. Infosys will announce its quarterly numbers (likely ahead of the market opening). After TCS, which disappointed Street expectations, focus is on Infosys. Analysts expect Infosys to post a strong Q1 of FY22 sequentially with a healthy dollar revenue growth of about 4 per cent. Besides, there analysts also expect Infosys to announce an upward revision of 100-200 bps to FY22 revenue guidance.

However, any disappointment by Infosys will not only drag the stock but the whole IT sector.

Nifty at crucial level

Market technical experts see that Nifty is holding at a crucial level and any conclusive break from current level could trigger a strong rally.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “Nifty is expected to revisit key overhead resistance of 15,900-15,915 levels of larger high low range in the next 1-2 sessions. In the last one month, the market has tested this hurdle for the three occasions and slipped into minor weakness from the highs in all the occasions. Technically, such repeated hitting of the hurdle and minor decline from the highs could eventually result in a sharp upside breakout of the resistance.”

STOCKS TO WATCH

Adani Airport Holdings Ltd (AAHL) , a wholly owned subsidiary of Adani Enterprises Ltd, has taken over the management control of Mumbai International Airport Limited (MIAL) from the GVK Group following the MIAL Board Meeting on Tuesday. This follows approvals received from the Government of India, the City and Industrial Development Corporation (CIDCO) of Maharashtra, and the Government of Maharashtra.

MIAL is India’s second busiest airport by both passenger and cargo traffic. With eight airports in its management and development portfolio, AAHL is now India’s largest airport infrastructure company, accounting for 25 per cent airport footfalls. With the addition of MIAL, AAHL will now also control 33 per cent of India’s air cargo traffic.

Zuari Agro Chemicals Ltd has announced that the SSP Plant of the company in Mahad has resumed its operations with supply of raw materials having been tied up with a supplier. The NPK A Plant has been shut down due to unavailability of raw materials.

Sadbhav Infrastructure India Ratings and Research has downgraded Sadbhav Infrastructure Project Ltd’s LongTerm Issuer Rating to ‘IND BBB+’ from ‘IND A-’. The outlook is negative.

Aruna Hotels The Board has approved a ₹24.90-crore Rights Issue. The company will issue 2.49 crore shares at ₹10 a share. Right entitlement ratio has been fixed as 83 shares for every 30 shares held by the eligible shareholders as on the record date.

Star Housing Finance Hinduja Housing Finance has sanctioned a loan facility of ₹5.30 crore to Star Housing Finance Limited and the same has been accepted and approved by the committee.

Result Calendar

5paisa Capital, Alliance Integrated Metaliks, Bhakti Gems and Jewellery, Craftsman Automation, Dodla Dairy, Essar Securities, Hatsun Agro Product, Infosys, L&T Technology Services, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and Vikas EcoTech will release their quarterly earnings on July 14.

Related Topics
comment COMMENT NOW