 "10 things you need to know before the opening bell")
Market outlook
Foreign investment flows will be closely watched after foreign institutional investors bought shares worth Rs 1,124 crore on Friday, snapping a 13-day selling streak, NSE data shows, raising hopes this week’s rally would continue. Foreign investors sold about Rs 12,000 crore worth of shares over the previous 13 sessions. The Indian government is also expected to be preparing additional fiscal and economic reforms after approving a gas price hike. Investors will especially be watching whether the government raises foreign investment limits in sectors such as defence and telecoms, in a bid to reduce concerns about India’s current account deficit. (Reuters)
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The rupee is likely to see the positive undertone continuing today, Mohan Shenoi of Kotak Mahindra Bank told CNBC-TV18. He sees the currency trading in the 59-59.50 range this week. However, the pressure on the rupee will continue to be higher compared with its emerging market as the country is witnessing larger flows and also current account deficit.
Global market cues
US stocks opened lower on Friday, as weakness in technology shares outweighed gains in other shares spurred by relief a premature pullback of central bank stimulus measures was unlikely.(Reuters)
Asian stocks got off to an uninspired start on Monday, while the US dollar held firm at one-month highs after an influential Federal Reserve official suggested September could be the beginning of the end of easy money from the central bank.(Reuters)
The dollar was holding broadly firm on Monday after a flood of month-end flows left it well positioned for a week packed with major economic data and central bank meetings.(Reuters)
Gold edged slightly higher on Monday after posting its biggest quarterly loss on record, as investors await key economic data this week for clues on when the Federal Reserve could taper its economic stimulus. Spot gold rose 0.2 percent to $1,236.39 an ounce by 5:48 a.m, after a 3 percent gain on Friday, while Comex gold rose about $13 to $1,236.40.(Reuters)
Stocks in news
Auto companies, as they announce June sales data today. The weakness in sales is expected to continue. Car sales are expected to fall 13-14 percent. Nomura sees Tata Motors witnessing a 30 percent fall in passenger vehicles. Maruti, meanwhile, is likely to see a 14 percent fall in sales.
Oil marketing companies are likely to be in the limelight as the companies raised petrol prices to offset the impact of the rupee’s depreciation.
Reliance Infrastructure, after the company refused to operate the Delhi Airport Metro line beyond 30 June. The Delhi Metro Rail Corporation (DMRC), which rejected the notice Friday, has termed it as a “violation” of the concession agreement and the ongoing arbitration proceedings.
Coal India, after PTI reported that the coal ministry has invited proposals from nine shortlisted firms, including ICICI Securities, KPMG, Ernst & Young, McKinsey, Deloitte and Crisil, for restructuring of the company.