Markets likely to open flat; Q4 earnings in focus

Flat opening seen tracking muted cues from Asia

Markets are likely to open flat, amid muted cues from Asia, with fourth quarter earnings in focus. Further, the government will also announce CPI data for March and IIP data for February on Tuesday.

At 8:35am, the early indicator SGX Nifty was up 4 points at 7,586.

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Foreign institutional investors were net sellers in equities worth Rs 180 crore on Friday, as per provisional stock exchange data.

"Friday’s lacklustre trades fail to conceal the bearish bias that is increasingly getting dominant. Downside objective of 7484 stands a fair chance of being achieved
today, with equally fair chance of volatility dominating the proceedings. Pull back above 7600, could however, dilute the bearish bias, though it would not be prudent to play the upsides, unless a close above 7800 is seen or dips extent beyond 7484," Geojit BNP Paribas said in a technical note.

STOCKS IN FOCUS

Tata Steel will be in focus after it reported 13% growth in sales to 2.72 million tonnes in the quarter ended March 2016 compared to the same quarter last fiscal. Crude steel production for the March 2016 quarter was 5% higher at 2.56 million tonnes.

Sun Pharma may gain after the company received US Food and Drug Administration approval for an ophthalmic solution, used for preventing pain and treating inflammation in eye, after cataract surgery.

Bharti Airtel may gain after the company acquired 4G spectrum in 8 circles from Aircel for Rs 3,500 crore.

Rupa may firm up after M/s. Oban Fashions Private Limited, a wholly-owned subsidiary of of the company entered into a definitive License Agreement with French Connection Limited.

DLF may see some action amid reports that the real estate major has started the process of divesting promoters' 40% stake in the rental arm DLF Cyber City Developers Ltd.

ARSS Infrastructure may gain after the company received a work order amounting to Rs. 156.85 Crores namely ‘"Budhapank-Salegaon Via- Rajathagarh - 3rd & 4th line: Execution of earthwork, minor bridges & other allied works.

GLOBAL MARKETS

Most Asian shares except China were trading lower on Monday with Japanese shares declining the most after data showed drop in core machinery orders in February. Core machinery orders for February declined 9.2% compared to the previous month. Japan's benchmark Nikkei was down 1.3% while Hang Seng and Straits Times were down 0.2% each. China's Shanghai Composite was up 1.7%.

US stocks came of their intra-day highs to end with marginal gains on Friday. Gains were led by energy shares on the back of uptick in crude oil prices. Further, profit taking in biotech and healthcare stocks capped upside gains for the Nasdaq. The Dow Jones industrial average gained 0.2% at 17,577, S&P 500 gained 0.3% at 2,048 and the tech-laden Nasdaq ended flat at 4,851.