Flat start; caution around 6000 levels - IIFL

With the Nifty crossing the 6000 barrier, investors will prefer to wait and watch if the barriers to growth and development increase. June inflation data will be out around noon. Industrial output and consumer inflation data released last week were disappointing to say the least.

The outlook is a flat start. Besides the usual global cues, a lot will hinge on how investors prepare ahead of the results of individual stocks. China's economy slowed to 7.5% growth in the second quarter but this number is more or less on expected lines. The currency movement will also be closely watched. The Indian rupee may rally even though foreign exchange reserves fell to a threeyear low of $280.176 billion in the week ended July 5. FIIs pulled out nearly $1.4bn from the debt market in the last fortnight.

CPI inched up to 9.87% in June, against 9.31 per cent in May, reducing hopes of an aggressive interest rate cut by RBI. IIP for the month of May 2013 stands at 167.6, which is 1.6% lower as compared to the level in the month of May 2012.

Source : Equity Bulls

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