Indices to open on a positive note

Indices will look at recouping some the lost gains with the Sensex having shed over 1000 points in the last two days. 

The market appears to be very fragile with investors dumping shares at signs of any trouble. The latest victims are debt laden companies which witnessed a free fall on the bourses. Collateral damage was seen among other counters including banks which have lent to real estate and infra companies. A day after the policy, Dr. Raghuram Rajan said the state of the economy was probably weaker the RBI had expected with poor corporate results that gave the central bank some room to cut interest rates on Tuesday. He added that the RBI has used all the room they had and the news flow regarding monsoon has been worse than they had anticipated.  HSBC PMI fell below the 50 mark for the first time in over a year. Disinvestment targets could also go for a toss given the volatile market.

The Agriculture Minister Radha Mohan Singh may be exuding confidence over tackling deficient monsoon, minimising production losses and its possible impact on overall economy but market seems to remain worried for now. Yet, there is hope. At least for the short term, the market will live on hope that this too shall pass. For the day, Euro zone debt yields are seeing a spike as hopes once again resurface that Greece could be save itself from a default. ECB President Mario Draghi says the central bank sees no reason to adjust its monetary policy stance following the rise in European bond yields.

The outlook is a flat to positive start. Indices will look at recouping some the lost gains with the Sensex having shed over 1000 points in the last two days. Global cues are mostly positive. Dow and S&P notched up some gains while Nasdaq closed up almost half a percent. Among the Asian markets, the Nikkei is up 0.3% while Hong Kong’s Hang Seng has gained 0.4%. China’s Shanghai index is marginally up.

Every Reliance AGM brings with it some expectations and action on the counter. A report states that the upcoming AGM on June 12 may be a key reason behind the company's small gains in the last three trading sessions when the BSE Sensex fell 3.5%. The stock jumped to a high of Rs. 910 on reports that the company is expected to produce 23 million standard cubic meters per day of more gas from five discoveries in the flagging KG-D6 block by 2016-17. Further, the company yesterday had said it entered into a definitive agreement for the sale of its entire holding in EFS Midstream to an affiliate of Enterprise Products Partners for around $ 1.07 billion. The stock however ended 0.4 percent lower at Rs. 895.

Oil ministers from Iraq, Venezuela and Angola said in Vienna this week that a price of $75 or $80 a barrel - barely $10 above the going rate - could be just fine, says a report adding that Iraq's Adel Abdel Mahdi said it would be "equitable".

Wipro Ltd announced a Salary Hike for employees. The company stated that the Average Salary Hike would Be 7% For Offshore Employees. The average Salary hike for Onsite Employees to be 2%, added Wipro.

According to Delhi Health Minister, Maggi has been banned for 15 Days. All noddle brands in market will be tested, added Delhi Govt. Future Group has removed stocking Nestle's noodle brand Maggi on all stores amid its safety concerns by several state governments.

Volvo is planning to exit Eicher Motors, according to reports. The company may sell 3.7% stake in the company.

Adani Enterprises ended at Rs. 109 after the stock price was adjusted to the ex-demerger. Earlier, the crashed 81% at Rs. 122.As per the scheme of arrangement, the power transmission business of Adani Enterprises has now been separated into Adani Transmissions, which will be listed later. Further, the mining business has been folded into Adani Enterprises. Also, the port and power assets of Adani Enterprises will be folded into Adani Ports and Special Economic Zone and Adani Power, respectively. Adani Ports was down 3.5 percent at Rs. 299, while Adani Power cracked 10 percent to Rs. 32.60.

Realty shares logged heavy losses for the second straight trading session post RBI warning on future rate cuts. Unitech crashed over 36 percent to Rs. 8.60. Indiabulls Real Estate tanked over 8% to Rs. 50.70, and HDIL plunged over 6 percent to Rs. 97.65. Oberoi Realty and Delta Corp also dropped over 4 percent each.

Jaypee group stocks witnessed a free fall in trades on the back of unabated selling pressure at these counters. Jaiprakash Associates nose-dived 20.5% to Rs. 13.10. Jaiprakash Power Ventures tumbled 8.5 percent to Rs. 6.47, and Jaypee Infratech slumped 6.3 percent to Rs. 14.10.

ADAG (Anil Dhirubhai Ambani Group) stocks also finished with deep cuts. Reliance Power collapsed 11 percent to Rs. 45.85. Reliance Infrastructure shed 6.8 percent at Rs. 375, and Reliance Capital dropped 5.5 percent to Rs. 363. Reliance Communications too plunged 7 percent to Rs. 59.20.

South Indian Bank rallied to a high of Rs. 24.10 on getting board approval to increase borrowing limit to Rs. 6,000 crore from Rs. 5,000 crore. The stock finished 2% in red at Rs. 23.05.

Emami gained 2 percent at Rs. 1,088 after the company entered into an agreement with Sanjeev Juneja to acquire his hair & scalp care business under the 'Kesh King' and allied brands.

India Tourism Development Corporation (ITDC) tumbled 6.8 percent to Rs. 206 on account of profit booking at higher levels. The stock had galloped almost 54 percent in the last three trading sessions following reports that the government will divest its eight loss-making hotels and it includes ITDC properties in Jammu & Kashmir, Guwahati, Bhubaneshwar and Puri.