Expect Positive Opening over Good IIP Numbers

Yesterday the markets became bear due to becoming cautious over the start of Q2 result session. The Indian market corrected and closed down by more than 0.50 per cent in end of yesterday’s trading session, with major drag from IT heavyweights. The IT index fell by 1.5 per cent and the TCS share price too down by 1.4 per cent.

The bears became strong after the Infosys announced its Q2 results. The stock ended 3.88 per cent lower over lower guidance in its result announcement. Though the company posted a 12 per cent growth in its Q2 revenue on sequential basis, the company lowered its revenue guidance for its FY16 dollar revenue over strong rupee. Also the company’s CFO Rajiv Bansal resigned from its post.

The domestic market further became bearish over the macro economic data release awaited in the yesterday evening. The Consumer Price Inflation (CPI) for September month came in at 4.41 per cent, against 3.66 per cent for August. The index of industrial production (IIP) for August came in at 6.4 per cent versus 4.2 per cent in July.

On European markets front, the markets seems to be consolidating after reaching one month high in last week’s rally. The investors were taking profits following last week’s gains. The FTSE 100 and CAC 40 closed down by 0.70 and 0.27 per cent respectively. while the DAX closed with marginal gains of 0.23 per cent yesterday.

Today morning, the Asian markets were trading in negative territory taking profits from two months high levels. Also trade data from China was mixed, with exports beating forecast and imports below expectations doing little to dispel concerns over a slowdown in China. Meanwhile the oil prices tumbled on Monday as traders took profits after last week's surge to an 11-week high.