Market may remain volatile

Euro zone debt worries remain in focus after a rout in global equities cast its long shadow on Indian stocks in the past few days. World stocks fell amid concern that a 110 billion-euro ($140 billion) rescue package for Greece will not be enough to keep Europe's most indebted nations from defaulting. The Group of Seven plans to hold a conference call on Friday, 7 May 2010, to discuss the Greek debt crisis.

Foreign funds dumped stocks worth a net Rs 3835.82 crore in three trading sessions from 5 May to 7 May 2010, according to data from the stock exchanges. The net outflow totaled Rs 4252.56 crore in the first few days this month, till 7 May 2010, probably due to redemption pressure for European funds in their home countries. The BSE Sensex lost 4.5% in the week ended Friday, 7 May 2010.

NSE's volatility index India VIX, a measure of traders' perception of near-term risks in the market based on options prices, jumped 12.48% on Friday, 7 May 2010, to 27.40. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.

Hindalco Industries, Ranbaxy Laboratories and Kotak Mahindra Bank unveil their January-March 2010 quarter results on Tuesday, 11 May 2010. The board of Kotak Mahindra will also consider stock-split proposal along with the financial results. State Bank of India, Reliance Infrastructure, Reliance Power and DLF are scheduled to announce their results on Friday, 14 May 2010.

The fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1,290 companies rose 29.4% to Rs 42157 crore on 29.1% rise in sales to Rs 391885 crore in the quarter ended March 2010 over the quarter ended March 2009.

Reliance Industries (RIL) may extend gains after the Supreme Court on Friday, 7 May 2010, ruled in favor of the company on a gas dispute with Reliance Natural Resources (RNRL). The court ordered the two firms to renegotiate a deal based on government policy on gas utilization.

Shares of Talwalkars Better Value Fitness will debut on the stock exchanges on Monday, 10 May 2010. The company had priced the initial public offer at Rs 128 per share, at the top end of the Rs 123-128 per share price band. The IPO got strong response from investors, with foreign institutional investors (FIIs) making a beeline for the issue. The issue was subscribed 28.39 times.