Market may open flat to slightly higher

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 3.50 points at the opening bell. On the macro front, the annual rate of inflation based on the wholesale price index (WPI) is seen easing to 6.6% in April 2012, as per the median estimate of a poll of economists carried out by Capital Market. The annual rate of inflation, based on monthly WPI stood at 6.89% (provisional) for the month of March 2012. The government unveils inflation data for April 2012 today, 14 May 2012. Interest rate sensitive, auto, realty and auto stocks will be in focus ahead of inflation data. L&T announces FY 2012 results today, 14 May 2012. Key benchmark indices edged lower for the fourth straight session on Friday, 11 May 2012 after the latest data showed a surprise contraction in industrial production in March 2012. The BSE Sensex lost 127.07 points or 0.77% to settle at 16,292.98, its lowest level since 16 January 2012. Foreign Institutional Investors (FIIs) bought shares worth Rs 158.57 crore on Friday, 11 May 2012, as per provisional figures. FIIs bought shares worth Rs 317.42 crore on Thursday, 10 May 2012. The latest data showed industrial production contracted 3.5% from a year earlier in March as manufacturing output shrank, deepening worries of a slowdown in the economy. The last time industrial output contracted was in October 2011, when production fell 5%. Manufacturing output, which has a 75.5% weight in the index of industrial production, contracted 4.4% from a year earlier in March. It had risen 3.9% on year in February. Capital goods output shrank 21.3%. However, electricity production increased 2.7% from a year earlier in March. For the year ended March 31, industrial output grew a muted 2.8%, against an 8.2% increase in the previous year, government data showed. Investors are closely watching India Inc's Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Focus is on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook. Bajaj Auto announces FY 2012 results on 17 May 2012. State Bank of India, Tata Steel and Coal India unveil FY 2012 results on 18 May 2012. Tata Power Company announces FY 2012 results on 22 May 2012. Bharat Heavy Electricals (Bhel) unveils Q4 results on 23 May 2012. BPCL unveils FY 2012 results on 25 May 2012. Tata Motors announces FY 2012 results on 29 May 2012. Mahindra & Mahindra (M&M) unveils FY 2012 results on 30 May 2012. Asian shares were mostly lower Monday, as concerns about Europe's debt woes worked to offset positive sentiment over China's weekend move to loosen monetary policy. Key benchmark indices in Hong Kong, China, Japan, Indonesia, South Korea and Taiwan were down by 0.01% to 0.79%. Singapore's Straits Times rose 0.17%. China has cut the amount of cash that banks must set aside as reserves for the third time in six months, pumping money into the financial system to support lending. Reserve ratios will fall 50 basis points, effective May 18, the People's Bank of China said.