Markets likely to open lower; TCS, RIL in focus

Markets are likely to open marginally lower, amid mixed global cues, with IT shares in focus after weak fourth quarter earnings from TCS even as investors look forward to fourth quarter earnings from Reliance Industries later today.

At 8:35AM, the early indicator SGX Nifty was down 2 points at 8,710.

Foreign institutional investors were net sellers in equities to the tune of Rs 214 crore, as per provisional stock exchange data.

"Today, the markets are likely open on flat note. All emerging markets are trading mixed. The coming session is likely to witness a range of 8650 on declines and 8800 on advances," said a morning note from SMC Global Securities.

Global Markets

Asian shares were trading firm on Friday shrugging of overnight weakness in US stock markets which ended marginally lower amid discouraging economic data. Shares in Japan continued  to witness profit taking with the benchmark Nikkei was down 0.5% to trade below the 20,000 mark. Meanwhile, shares in China and Hong Kong were trading higher with the benchmarks Shanghai Composite and Hang Seng up 1.7% and 0.7%, respectively while the Straits Times was trading flat with positive bias.

Major US stock indices ended with marginal losses as concerns over weak first quarter earnings and weak economic data weighed on investor sentiment. US housing starts in March grew way below expectations. The Dow Jones industrial average slipped 7 points to close at 18,105.77 the broader S&P 500 ended 2 points lower at 2,104.99 and the tech-laden Nasdaq slipped 3 points at 5,007.79.

Stocks in focus

TCS is likely to witness pressure after the company reported a net profit of Rs 3,858 crore for the March quarter, down 27 per cent on an annual basis and 29 per cent in sequential terms hit by a one-time bonus payment, currency headwinds and weakness in verticals such as telecom, energy and insurance. Other IT majors such as Infosys, Wipro and HCL Tech are likely to trade weak in early trades.

Reliance Industries will be in action as the oil major is expected to post a record fourth quarter net profit as it benefits from refining margins, which will be partially offset by lower petrochemical margins. Analysts expect the gross refining margin to be $9.5-10 per barrel against $7.3 in the previous quarter.

MMTC may see some action amid reports that the government plans to divest 15% stake in the state-owned trading enterprise during the current financial year.

IndusInd Bank could rebound after the private lender's net profit rose 27% for the quarter ended March, 2015 to Rs 495 crore from Rs 396 crore in the correquarter of 2013-14.

Rolta India which fell sharply on Thursday could see some recovery after the company in a statement said that the contents of the Glaucus Research Report are "baseless, erroneous and malafide".