In the absence of any strong positive trigger, Indian equities had a tepid start and subsequently lost ground, to move into the red rather quickly. The previous session’s activity too was marked by both DII and FII net selling into the markets and profit booking continues to dominate the mood on the street. Also, as we move closer to earnings season the market is likely to start adopting a more stock-specific flavour rather than get any directional moves in a significant way. Financial service professional
NIFTY constituents are likely to report mixed earnings with IT and PHARMA likely to lead the charge of +ve earnings surprises while BANKS and INFRA stocks might see themselves losing ground on the back of weaker earnings. A bout of profit-booking within the early announcers of results particularly the large caps may set the cat amongst the pigeons and lead to mid caps too losing ground, irrespective of quality of results announced – that could provide some good opportunity to buy into dips within select mid caps, for the patient investors!
The INR continues to lose some ground, though not in a quantum that could cause too much of worry and is also likely to see some reversals once large inflows that are in the pipeline (GSKPHARMA, TESCO, VODAFONE) get triggered in the coming weeks. Yields continue to hover in the 9% neighbourhood in the absence of any signals of inflation easing out significantly.