Markets likely to rebound in trades; HCL Tech, SBI, TCS in focus

The early indicator, SGX Nifty has gained marginally by 6 points at 8,773 levels

Markets are likely to rebound in trades today with marginal gains tracking recovery among global peers.

Benchmark share indices ended near one-month low yesterday, tracking a sell-off in global stocks, with bank and information technology shares leading the decline.

Further, fears of foreign fund outflows in the short term amid sooner-than-expected hike interest rates by the US Fed in wake of robust jobs data also dampened sentiment.

“If the support at 8,700 breaks, we will see lower supports being tested at 50-point intervals on the Nifty. A break below 8,700 would imply the current short-term correction could turn into an intermediate correction. The 200-Day Moving Average is in the 8,050-8,100 zone and the previous intermediate correction saw support come in at 7,950-8,000. A move below that level would be taken seriously, in that it would indicate a potential trend reversal in the long-term bull market.” points out Devangshu Datta, independent technical analyst and market expert.

The early indicator, SGX Nifty has gained marginally by 6 points at 8,773.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 838.30 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, as per provisional data.

Besides, investors would keenly await data on industrial production for January and consumer price index for February scheduled to be announced on Thursday.

Developments in the ongoing session of Parliament will be closely watched.

GLOBAL MARKETS

The US dollar neared multi-year highs on the yen and euro in Asia on Tuesday amid starkly diverging outlooks for interest rates globally, while markets looked past a surprisingly high reading on Chinese inflation.

The dollar climbed to a three-month high at 121.71 yen and came within a whisker of the December peak at 121.84. A break would take it to territory not visited since July 2007.

A lower yen is generally viewed as positive for Japan's exports and corporate profits, and the Nikkei added 0.5%.

Other Asian markets were mixed with Australian stocks up 0.5%, while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2%.

Chinese consumer prices topped expectations with an annual rise of 1.4% in February, although much of the pick up was caused by seasonal volatility in food prices.

STOCKS TO WATCH

The initial Public offer (IPO) of Adlabs Entertainment will open today and close on March 12, 2015.

The Shiv Nadar Foundation offloaded 56 million shares worth Rs 1,150 crore in HCL Technologies on Monday, constituting 0.79% stake in the company.

The railways ministry has received investment commitments to the tune of Rs 10,000 crore from private sector companies for development of 19 projects under participative models of domestic and foreign direct investment (FDI), minister of state for railways Manoj Sinha told Parliament on Monday. Select rail stocks will be in focus.

State Bank of Travancore (SBT), associate of State Bank of India (SBI), will need equity capital of Rs 2,500-3,000 crore to support an annual 14 per cent rise in assets till March 2019.

With e-commerce growing in India, realty major DLF has tied-up with online market place Snapdeal to sell its apartments and would offer a one per cent discount to potential home buyers.

A Rs 15,000-crore share sale by the country’s biggest lender, State Bank of India (SBI), could be launched as early as this month, said sources.

Air-conditioner maker Blue Star, is planning to set up a manufacturing facility down South, as its room AC manufacturing unit in Himachal Pradesh is expected to run out of capacity by the year end.

Tata Consultancy Services has been named as the top employer in Europe for the third consecutive year by a top employers certification agency, citing the Indian IT major as an "exceptional performer" in nine core human resources areas.

Colgate Palmolive (India) has fixed 9 April 2015 as the record date for payment of third interim dividend, that may be declared by the board of directors for the financial year ending 31 March 2015 (FY 2015) at their meeting to be held on 27 March 2015.