Indices to open positive

Whether the momentum can be maintained remains to be seen as the 200-DMA will remain in focus for a while and triggers are hard to come by on the positive side. 

The ambitions and actions of the Modi-led government will be a topic for discussion as a lot of analysis will do the rounds on what the government has achieved in the last one year. An outburst by Arun Shourie on the government and the key ministers will keep the pressure on the government.   

The outlook is a positive start. Whether the momentum can be maintained remains to be seen as the 200-DMA will remain in focus for a while and triggers are hard to come by on the positive side. 

The indices have shed nearly 10% from their March highs and investors will hope the market finds support around the current levels.   The PMI numbers today will be watched. 

Global cues are subdued even though US markets ended higher on Friday. Asian markets are mostly lower with Hang Seng and Shanghai trading in the red.   Aditya Birla Group stocks could see action after it consolidated its fashion retail business under the listed entity, Pantaloons Fashion and Retail, which has been rechristened as Aditya Birla Fashion and Retail. Aditya Birla Nuvo will spin off its wholly-owned subsidiary, Madura Garments Lifestyle Retail Company, to merge it with the new entity, which will have a combined turnover of Rs. 5,290 crore.   

Nifty lost ~3.4% in April and the week gone by may be best forgotten for most companies especially the top 10 companies on the bourses by market-cap. Except for ICICI Bank, all of them shed weight as the market witnessed a sell-off on most days. The combined market cap erosion was to the tune of nearly Rs. 66,000 crore as stocks like TCS, RIL, ONGC and ITC saw losses. ITC lost close to Rs. 20,000 crore in market cap while ONGC shed a little over Rs. 9500 crore. 

Coal India lost over Rs. 8000 crore while Infosys shed weight by over Rs6000 crore in market cap. ICICI Bank bucked the trend and added around Rs. 13,500 crore to its market cap.    Bank of India, Union Bank of India and Allahabad Bank have sought exemption from payment of dividend citing higher provisioning for non-performing assets (NPAs), says a report.   The Black Money issue will be in focus this week. 

Last week, Union Finance Minister Arun Jaitley said that the present Government has taken various steps to squeeze the black money including undisclosed assets within and outside the country. He said that our focus is on reasonable tax rates and ease of doing business for incentivising people to abide by laws and avoid evasion of taxes etc.    

India's foreign exchange reserves increased $ 1.4 bn in the week ended April 24 to touch $344.6 bn,.The foreign currency assets  stood at $ 320 bn, according to RBI data. The gold reserves remained unchanged at $19.04 bn.   ASK Property Investment Advisors announced the first close of Rs.1000 Cr. of its Rs.1500 Cr. third domestic fund - ‘ASK Real Estate Special Opportunities Fund II’. 

ASK Property has raised this Rs.1000 Cr in less than six months from its launch date.  ASK also announced the maiden investment from this fund in    Purvankara’s Chennai project ‘Provident’, making this Purvankara Group’s first ever private equity partnership in its history.   The Reserve Bank of India has notified that the foreign share holding by Foreign Institutional Investors (FIIs)/ Registered Foreign Portfolios Investors (RFPIs) in M/s Tata Chemicals Ltd. have gone below the threshold limit.  

  

The petrol prices were hiked by Rs 3.96 per litre and diesel by Rs 2.37 a litre.The Prices of petrol in Delhi will be Rs 63.16 a litre from Friday, while diesel will cost Rs 49.57 per litre as against Rs 47.20, Indian Oil Corp (IOC) reportedly said.   IOC, Bharat Petroleum Corp and Hindustan Petroleum Corp revise petrol and diesel prices on 1st and 16th of every month. The Price of non-subsidised LPG was reduced by Rs 5 per cylinder.   A report said that price of non-subsidised LPG was cut by Rs 5 to Rs 616 per 14.2-kg cylinder in Delhi. In Mumbai, the non-subsidised cooking gas has been  reduced by Rs 4.50 to Rs 627.50, says report.   Government will reduce export tax on low-grade iron ore to 10% from 30 per cent, Finance Minister Arun Jaitley reportedly said.    

The combined Index of Eight Core Industries stands at 177.8 in March, 2015, which was 0.1 % lower compared to the index of March, 2014. Its cumulative growth during April to March, 2014-15 was 3.5 %.    Oil companies increased price of aviation turbine fuel (ATF), or jet fuel, in Delhi by Rs. 272 per kilolitre or 0.5 per cent to Rs. 49,609.84 per kl, according to reports.   The car sales rises in April. HMSI recorded 9% growth by selling 340,791 units, versus the negative growth of 4% of 2Wheeler industry (Domestic and Exports both).    

Maruti Suzuki India Limited sold a total of 111,748 units in April 2015. This includes 11039 units for export. The Company had sold a total of 86196 units in April 2014.    Auto-maker Mahindra & Mahindra reported 1% rise in total sales at 36,727 units in April 2015. While Exports were up 4% at 2,260 units as compared to 2,181 units in the same period.