All eyes on Infosys results - Eastern Financiers

Markets are likely to continue trading within a tight range as it reacts to a lot of important economic data and Q1FY14 results of corporates, that starts trickling in from next week. Important macro datas that are set to get announced includes the Industrial production data for the month of May and the Consumer price Index Inflation for the month of June. Apart from these, markets would be keenly watching the movement in the domestic currency and other global cues, including the movement of commodity prices. FII flows, that have dried up substantially in the recent past would also be watched-out by market participants.

Corporate India would start announcing their first quarter results of FY14 next week and markets would be taking cues from the same. Persisting sluggish demand environment, high costs and fresh headwinds in the form of plummeting rupee is expected to take its toll on the performance of India Inc. Expectations are not very great going into this earnings season and mediocre performance from India Inc is expected to cap possibilities of any big up-side movement in our markets in the near term. Amongst the big corporates, Infosys would kick-start the earnings season as it comes up with its quarterly result on 12th July-2012. Investors would be closely observing the guidance given by former ITbellwether for the current fiscal and try to assess the expected performance of the overall IT sector.

Equally important would be the Industrial production numbers for the month of May. Factory output this time is expected to slip a tad further continuing its downward journey. The Core sectors that have almost 38 percent weightage in the industrial numbers had shown sharp deceleration in growth for the month of May, falling to 2.3 percent from 7.2 percent, last year. The PMI data for May had also hinted a slow-down in Industrial activity.

Another important economic data that would be coming in is the retail inflation numbers for the month of June. Retail inflation has been moderating for the last three months and is expected to continue the trend in June as well. A combination of weak IIP number and moderating inflation would strengthen the case for a rate cut by the RBI.

Globally, lot of important data points would get announced during the week including Chinese CPI, Australian Unemployment rate, US initial Jobless claims, etc. Investors would be taking note of the same.

Source : Equity Bulls

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