Market may remain volatile ahead of F&O expiry

The market may remain volatile as traders roll over positions from the near-month March 2012 series to April 2012 series. The March 2012 derivatives contracts expire on Thursday, 29 March 2012.

The next major trigger for the market is Q4 March 2012 earnings. The earnings season will begin in mid April 2012. Advance tax payout of top Indian firms for the last installment of 15 March 2012 was largely flat. A muted advance tax payment indicates that the revenues and profits of companies are under stress. Companies have to pay advance tax on their projected earnings a fortnight before the end of every quarter.



The board of directors of Tata Metaliks meets on Monday, 26 March 2012, to consider the issue and allotment of preference shares on preferential basis. The board of Halonix meets on Tuesday, 27 March 2012, to consider the business update and other related matters. The board of Euro Ceramics meets on Tuesday, 27 March 2012, to consider issue of convertible debentures and equity shares on preferential basis.

The board of IFB Industries meets on Thursday, 29 March 2012, to consider preferential issue of equity shares to promoters and other matters. The board of Indoco Remedies meets on 29 March 2012, to consider stock split and bonus issue. The board of Cholamandalam Investment And Finance Company meets on Friday, 30 March 2012, to consider the business plan of the company for the financial year 2012-2013 amongst other items.

On the macro front, the government is slated to announce its market borrowing calendar for first half of FY 2013 (year ending March 2013) next week. The data on Balance of Payment (BoP) for quarter ended 31 December 2011 is due on Friday, 30 March 2012. The data on external debt for end December 2011 is also on 30 March 2012. The data on consumer price index of industrial workers is also due to 30 March.