Investors have been looking for some cooling to pick up quality counters and looks like their prayers are being answered. The global cues are subdued even as investors await key US data besides statements from US Federal Reserve meeting. Expectations are that US central bank will cut its monthly bond-buying program by another $10 billion. This time there is no updating of economic forecasts or Janet Yellen’s press conference so what matters is the statement and its interpretations. The US Commerce Department is expected to report that the economy grew after shrinking in the previous quarter.
The outlook is a flat to weak start ahead of the F&O expiry on Thursday. Companies which declared their results on Tuesday when the market was closed, will be in focus. ITC net profit grew 15.6%. Bharti Airtel reported 61% jump in consolidated Q1 net profit. Ranbaxy net loss stood at Rs 186 crore for the quarter due to a one-time settlement provision.
PSU banks will be in focus ahead of Finance Minister Arun Jaitley’s meeting with all the heads of PSBs on July 31. Reports indicate that the FM may try to impress upon PSU banks to lower interest rates for boosting growth, according to reports.