Looking forward

With the Nifty and Sensex above the psychological levels of 6,000 and 20,000 respectively, the market is aiming for new highs. Corporate results have been encouraging with heavyweights beating expectations.

The opening is set to flat. Global cues are not so encouraging. A number of heavyweights will announce their results today. Reliance which delivered a stunning set of numbers post market on Friday could dictate the proceedings initially.

Moody’s has reaffirmed India’s rating at ‘Baa3’ and the outlook as stable. Retaining a stable outlook on India’s sovereign ratings, at Baa3, the lowest level in investment grade, it has, however, said government finances are the “weakest aspect of India’s macroeconomic profile”. S&P and Fitch have warned of a rating downgrade recently.

Asian markets are mostly lower. The yen hit a new low. The Bank of Japan begins its policy meeting today and expectations are of bold monetary easing measures. Australia’s S&P/ASX 200 Index is flat. South Korea’s Kospi is a bit lower while Singapore’s Straits Times Index is marginally higher. Hong Kong’s Hang Seng Index (HSI) and China’s Shanghai Composite Index are both slightly lower.

Results Preview: Cairn India Rev Rs45.4bn (+46.6% yoy), PAT Rs30.7bn (+56.7% yoy); NTPC Rev Rs166bn (+8.6% yoy), Reported PAT- Rs26bn (+22% yoy); Asian Paints (Consolidated) Rev Rs29.8bn (+16.5% yoy), PAT Rs3.3bn (+24.5% yoy).