In a shortened trading week in the Indian markets on account of Independence Day on 15th August, key events to watch out for are:
1- India Inflation data
2 -Earnings: Tata Steel, Hindalco, Reliance Infra and Coal India among the major firms reporting their 1Q12 numbers.
3-Monsoon Session of the Parliament: The ongoing session awaits some policy response from the Finance Minister P. Chidambaram to prop up the economy.
FII Data: Inspite of lower than expected monsoons this year, FII’s have infused a total of INR 4800 cr in the equity markets. News of expected reforms from the ongoing parliament sessions are one of the major reasons for the increased investment inspite of dismal macro data. For the 2Q12 period (Apr – June) ,these institutions have infused INR 10,273 cr vs withdrawal of INR 1957 cr.
On stock specific news, it is observed that FII holdings have increased in IT stocks on rupee depreciation. Apart from HCL, stocks such as Infosys, TCS, Tech Mahindra and Wipro saw FII’s increase their holdings. Other IT firms such as Hexaware, Oracle Finance Services and Mphasis also saw an increase in FII holdings. (Economic Times)
Jindal Power and Steel Ltd – Mining firm is to begin production of coal from its mines in Indonesia and Mozambique. The firm will source its supply of coal for its plants producing steel. (Economic Times)
Bank of England’s Governor Mervyn King stated that the euro region crisis would not end unless massive reforms are undertaken. The crisis weighed in heavily on UK’s economy but reforms on the banking sector could be a step in getting on the path to recovery. (Bloomberg)
Tuesday would see German and French GDP data come out. Germany’s GDP on q/q basis is expected to fall 0.1 percent vs prv period’s 0.0 percent. On a y/y basis, it is expected to expand slower at 1.0 percent vs 1.7 percent previously. France could see its GDP contracting 0.1 percent as per expectations over previous period’s unchanged number. (Bloomberg)