Indian markets opened in red this morning on weak global cues and ahead of the country’s industrial output data.
According to a Reuters Poll, India's industrial output probably rose for a fourth consecutive month in April, but at a slightly slower pace of 2.4 percent after a 2.5 percent rise in March, a Reuters poll showed, suggesting economic recovery remains tepid.
The Consumer Price Index (CPI) inflation data is another important data point for the market and expectations are some cooling may be seen here.
The BSE Sensex opened down 60 points at 19081, while the Nifty was down 17 points at 5774. The rupee, however, opened stronger at 58.14 against the US dollar after closing at 58.40 on Tuesday after the Reserve Bank of India intervened to stem rupee's sharp decline, traders said.
According to Anindya Banerjee, Currency Analyst, Kotak Securities, “In June itself, in few short days Indian Rupee has depreciated over 4% against the Rupee and more so against the other currencies like Euro and Pound. Fear of QE unwinding by the US central bank and overly short positioning in USD could have the reason behind the move. A weak Rupee does not augur well for corporates who have un-hedged foreign currency loans or large concentration of net imports. A weak Rupee and also a strong yen have triggered a sell-off in the Indian equities which is down around 1.65%. Over the near-term we could see a range bound action in USD/INR between 57.50 and 59.00, as recent spate of depreciation has been too fast and a consolidation is warranted ahead of the US Fed meeting on 19th of June."
On the political front, BJP stalwart LK Advani is back into the BJP fold after high drama. It took RSS chief to convince Advani to take his resignation back. Rajnath Singh assured Advani that all his concerns regarding the functioning of the party will be addressed.
Petrol prices are set to be hiked by Rs.1.5-2 by Friday, said reports.
May auto sales are down once again, according to latest SIAM figures and auto manufacturers are set to cut workforce. Auto stocks will be under pressure today.
Stocks in news
JSPL stock tanked as much as 24% on Tuesday after CBI filed an FIR against the company in the coal block allocation scam. CBI has accused Congress MP Naveen Jindal and the former minister of state for coal Dasari Narayan Rao of fraud and corruption in the allocation of a coal block. The stock is down another 1.4 percent today at Rs 224.
Titan Industries plunged 10 percent amid concerns that restrictions put by RBI on gold imports will hit business prospects. On Tuesday, the stock lost 13 percent . Since June 4, when the RBI imposed more restrictions on gold imports, the stock has lost 16 percent.
MMTC stake sale is on June 13; a panel of ministers on disinvestment will meet on Wednesday to decide on same. The stock is down 4 percent.
Jet Airways could see some interest as the FIPB is likely to consider Jet-Etihad deal along with 29 other proposals in the coming days.The stock is down 0.61 percent.