NEW DELHI: The 50-share Nifty index is expected to open lower on Monday tracking negative Asian markets while rising inflation, high interest rates and slowing growth will keep investors at bay.
India markets rallied on Friday but the government's late evening decision to raise diesel and cooking gas prices and investors' worry about the wobbly Italian finances may temper gains going forward.
Oil & marketing companies will be watched after EGOMs decision on Friday to raise diesel prices by Rs 3 per litre, Rs 50 per cyclinder hike in domestic LPG and Rs 2 per litre increase in Kerosene rate.
However some markets reports suggest despite one of the steepest hike in fuel prices, state-run oil firms are likely to lose Rs 1,21,700 crore revenue loss on selling diesel, domestic LPG and Kerosene at governments rates.
According to Reuters report, Oil secretary G.C Chaturvedi said the government's decision to hike fuel prices is expected to add 30 bps to the inflation figures.
This week we will see F&O expiry on Thursday and that will mean more volatility for the week. Equity stocks across the board saw sharp short covering as traders caught with short positions on stocks and indices scrambled to cut their losses short and bought back heavily causing the index to rise close to 3 per cent on Friday.
"Markets are likely to continue to rise as Nifty managed to break past an important resistance on the charts the one at 5340 on the Nifty" says Kunal Saroagi, CEO, Equityrush. "Next serious resistance will be close to 5540 and there is a strong possibility that we might see the Nifty taking a stab at that level this coming week", adds Kunal.
The 30-share BSE Sensex is already down more than 13 percent year-to-date, making it the worst performer among its peers in emerging markets.
Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece's debt crisis. The Dow industrials and the S&P 500 fell for their seventh week in the last eight.
The Dow Jones industrial average dropped 115.42 points, or 0.96 percent, to 11,934.58 at the close. The Standard & Poor's 500 Index fell 15.05 points, or 1.17 percent, to 1,268.45.
The Nasdaq Composite Index lost 33.86 points, or 1.26 percent, to 2,652.89.
Asian equities slipped on Monday, with taking safe heaven ahead of a Greek vote on unpopular fiscal austerity measures this week and a gauge of U.S. factory activity that is expected to show slowing growth.
In early trade Hong Kong dipped 0.70 percent, Tokyo lost 0.80 percent, Seoul was 0.60 percent lower and Shanghai up 0.10 percent.
At 08:16 AM, the Nifty India stock futures in Singapore were down 47 points at 5436, indicating a lower opening in the domestic market
Stocks to watch:
BHEL after the state-owned power equipment maker is targeting to increase its revenue from exports to Rs 4,500 crore this fiscal and may pick up stake in ventures abroad.
Emami after the company said it is in talks with global FMCG giant Reckitt Benckiser to buy the personal care business of Paras Healthcare for an estimated deal size of up to Rs 900 crore.
Bharti Airtel after the telecom major said it plans to undertake restructuring exercise in its business.
SpiceJet after the budget carrier has sought the Reserve Bank of India's approval to raise $270 million from Canada's export finance agency Export Development Canada (EDC) for aircraft purchases.
NMDC after two sources said the state-run iron ore miner said is in talks to acquire controlling stake in mining from Greystone Mineracao do Brasil for $ 1 billion.
Tata Power after the company's Mundra project hits yet another road block. Forest Clearances, right-of-way issues are major roadblocks for the project going ahead.
Reliance Infra after the company looks to bid for 5 road projects this year to increase the market share in road business from 8 per cent to 10 per cent.
Dish TV after the government said could consider FDI proposal on July 6.
GTL LTd and GTL infra after the group appointed SBI Cap to restructure the debt. SBI Cap will present its report in next 30 days.
India markets rallied on Friday but the government's late evening decision to raise diesel and cooking gas prices and investors' worry about the wobbly Italian finances may temper gains going forward.
Oil & marketing companies will be watched after EGOMs decision on Friday to raise diesel prices by Rs 3 per litre, Rs 50 per cyclinder hike in domestic LPG and Rs 2 per litre increase in Kerosene rate.
However some markets reports suggest despite one of the steepest hike in fuel prices, state-run oil firms are likely to lose Rs 1,21,700 crore revenue loss on selling diesel, domestic LPG and Kerosene at governments rates.
According to Reuters report, Oil secretary G.C Chaturvedi said the government's decision to hike fuel prices is expected to add 30 bps to the inflation figures.
This week we will see F&O expiry on Thursday and that will mean more volatility for the week. Equity stocks across the board saw sharp short covering as traders caught with short positions on stocks and indices scrambled to cut their losses short and bought back heavily causing the index to rise close to 3 per cent on Friday.
"Markets are likely to continue to rise as Nifty managed to break past an important resistance on the charts the one at 5340 on the Nifty" says Kunal Saroagi, CEO, Equityrush. "Next serious resistance will be close to 5540 and there is a strong possibility that we might see the Nifty taking a stab at that level this coming week", adds Kunal.
The 30-share BSE Sensex is already down more than 13 percent year-to-date, making it the worst performer among its peers in emerging markets.
Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece's debt crisis. The Dow industrials and the S&P 500 fell for their seventh week in the last eight.
The Dow Jones industrial average dropped 115.42 points, or 0.96 percent, to 11,934.58 at the close. The Standard & Poor's 500 Index fell 15.05 points, or 1.17 percent, to 1,268.45.
The Nasdaq Composite Index lost 33.86 points, or 1.26 percent, to 2,652.89.
Asian equities slipped on Monday, with taking safe heaven ahead of a Greek vote on unpopular fiscal austerity measures this week and a gauge of U.S. factory activity that is expected to show slowing growth.
In early trade Hong Kong dipped 0.70 percent, Tokyo lost 0.80 percent, Seoul was 0.60 percent lower and Shanghai up 0.10 percent.
At 08:16 AM, the Nifty India stock futures in Singapore were down 47 points at 5436, indicating a lower opening in the domestic market
Stocks to watch:
BHEL after the state-owned power equipment maker is targeting to increase its revenue from exports to Rs 4,500 crore this fiscal and may pick up stake in ventures abroad.
Emami after the company said it is in talks with global FMCG giant Reckitt Benckiser to buy the personal care business of Paras Healthcare for an estimated deal size of up to Rs 900 crore.
Bharti Airtel after the telecom major said it plans to undertake restructuring exercise in its business.
SpiceJet after the budget carrier has sought the Reserve Bank of India's approval to raise $270 million from Canada's export finance agency Export Development Canada (EDC) for aircraft purchases.
NMDC after two sources said the state-run iron ore miner said is in talks to acquire controlling stake in mining from Greystone Mineracao do Brasil for $ 1 billion.
Tata Power after the company's Mundra project hits yet another road block. Forest Clearances, right-of-way issues are major roadblocks for the project going ahead.
Reliance Infra after the company looks to bid for 5 road projects this year to increase the market share in road business from 8 per cent to 10 per cent.
Dish TV after the government said could consider FDI proposal on July 6.
GTL LTd and GTL infra after the group appointed SBI Cap to restructure the debt. SBI Cap will present its report in next 30 days.
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