Market seen opening firm on positive global cues; HDFC results eyed

The market is likely to see a firm start on positive global cues. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a gain of 27 points at the opening bell. The market sentiment remains firm on sustained buying by foreign institutional investors (FIIs) over the past few days. FIIs bought shares worth a net Rs 868.71 crore on Thursday, 7 July 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) sold shares worth Rs 161.03 crore on that day. The results season kickstarts today, 8 July 2011, with housing finance major HDFC unveiling its Q1 June 2011 results.



As the market enters the crucial period of corporate earnings, investors will closely watch the post-Q1 June 2011 result management commentary to gauge the future earnings outlook at a time when Indian firms are witnessing cost pressures amid rising interest rates and staff costs. A hike in transportation costs will add to cost pressure of India Inc. As per reports, freight rates have gone up by 8% to 9% on all routes across India following the recent hike in diesel prices.

IT bellwether Infosys unveils Q1 results on 12 July 2011. IT giant TCS unveils Q1 results on 14 July 2011. HDFC Bank and Ashok Leyland report Q1 results on 19 July 2011. Wipro, Dr Reddy's Lab and Exide Industries are set to announce Q1 results on 20 July 2011. Zee Entertainment Enterprises, JSW Energy and Biocon unveil Q1 results on 21 July 2011. Private sector bank Axis Bank reports Q1 results on 22 July 2011. Godrej Consumer Products reports Q1 earnings on 23 July 2011. Car major Maruti Suzuki and steel major JSW Steel are set to unveil Q1 results on 26 July 2011. Infrastructure Development Finance Company (IDFC) unveils Q1 results on 27 July 2011. Power Finance Corporation announces Q1 results on 29 July 2011.

Monsoon rains were 25% below normal in the week to 6 July 2011, slowing from the 10% above average rains in the previous week, the weather office said on Thursday. Rainfall in the month of July is considered crucial as sowing of a number of crops starts in June and good July rains determine the soil moisture and ensure proper development of the crops planted in June.

An Empowered Group of Ministers (EGoM) is reportedly scheduled to meet on 11 July 2011 to consider the crucial Food Security Bill and allow export of food grains.

Many major Asia markets rallied Friday, with retail, energy and financial stocks gaining as US employment data released overnight improved risk appetite. Key benchmark indices in Hong Kong, Taiwan, Japan, Indonesia, Singapore, South Korea were up by between 0.04% to 1.11%. Resource and energy stocks were boosted as Nymex crude futures hovered above $98 a barrel.

Mainland Chinese stocks fluctuated between gains and losses on caution ahead of the release of much-awaited June inflation figures on Saturday. The National Bureau of Statistics brought forward the release date for the data, which was earlier to be announced on 15 July 2011.

US stocks rallied on Thursday in the wake of a report showing an increase in private-sector employment that outstripped economists' forecasts. The result buoyed expectations for the crucial US nonfarm payrolls report due later in the global day today, 8 July 2011.

On Thursday, the European Central Bank raised interest rates by a quarter of a percentage point to 1.5%, but the Bank of England kept its key interest rate at a record low 0.5% as worries about the lacklustre recovery outweighed any concern about above-target inflation.