Sensex, Nifty to open on a weak note

Chinese CPI has risen to 1.6% in December from 1.5% in the previous month. Shanghai Composite is down over a percent. The slow economic recovery and poor show reported by Corporate India, quarter-after-quarter, will continue to be a concern.

Market theories don’t seem to be working. Earlier, there was something called the January effect abroad which meant that stock prices would increase during January due to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off. The fact of the matter is these theories remain only theories as markets have a mind of their own and for now they are desperately seeking support levels. For the month of Jan, foreign investors have sold Rs. 493 crore worth of equities.

The outlook is a weak start. Chinese CPI  has risen to 1.6%  in December from 1.5% in the previous month. Shanghai Composite is down over a percent. On Friday, US indices ended weaker. Most other Asian indices are in the red with Hong Kong's Hang Seng down 2.5%, South Korea's Kospi lower by over half a percent and Taiwan's TWSE down 1.3%.

The slow economic recovery and poor show reported by Corporate India, quarter-after-quarter, will continue to be a concern. The coming week has a number of larger companies announcing their results. These include Infy, TCS, Indusind Bank and HUL. While it may be difficult to predict the timing of broad earnings pick up, but a recovery has started in many companies outside the Nifty. It would be prudent for investors to identify these stocks and sectors rather than wait for a full-fledged recovery.
Auto stocks will be in focus as December sales numbers will be announced by Society of Indian Automobile Manufacturers.

Archit Organosys will consider issue of shares on pref basis, warrants convertible in to equity shares.

Enkei Wheels (India) will consider allotment of equity shares.

Mercury Metals and PVV infra board will meet to issue equity shares.

Vivimed Labs could see action as the board will today consider sub division of equity shares.

Shekhawati Poly Yarn will consider share allotment on conversion of warrants.

The paper division of ITC Ltd. is evaluating buyout of the Sirpur Paper Mills Ltd. in Telangana, according to reports.

India has taken up a massive energy efficiency mission under which it will switch over to LED bulbs by the end of 2018, which would result in a saving $ 6 billion per annum, says Union Minister for Power, Coal, New & Renewable Energy, Piyush Goyal.

The country’s forex reserves were lower by $1.68 bn in the week ended 01 January 2015 to US$ 350.3692 billion.

Passengers may have to pay higher fares following the finance ministry’s recent decision to cut gross budgetary support to railways ministry by Rs.12,000 crore, according to reports.

The Government of India re-appointed Dr. Urjit R. Patel as the Deputy Governor of the Reserve Bank of India, for a further period of three years with effect from taking charge of the post on or after January 11, 2016, or, until further orders, whichever is earlier.

The non-passage of GST bill will be a blow to the Indian democracy, economy and the overall development process, Union Minister of State for Finance Jayant Sinha has said.
Finance Minister Arun Jaitley is expected to hold pre-Budget consultations with finance sector representatives later in the day.