Pre-market: Inflation, results to decide direction

HDFC Bank, JSW Steel, Sesa Goa

After an eventful last few sessions, the markets will continue sway to the earnings of India Inc and global cues this week. For today, June inflation numbers due later in the day will determine how the markets pan out in trade.

The markets tried their best to edge higher in the early part of the last week, but eventually fell apart following earnings disappointment from Infosys. The Sensex had touched a fresh three-month high, but eventually ended with a loss of 307 points at 17,214 on Friday.

“On the upside, the Sensex is likely to face considerable resistance around 17,430 – 17,500 levels,” technical analysts suggest. At 805 am Indian Standard Time, the SGX Nifty was trading at 5,255 – up 0.3 per cent.

Among individual stocks, HDFC Bank will react to the 30 per cent net profit growth along with robust loan and deposit growth for the June 2012 quarter.

JSW Steel could also be in focus on reports that it plans to set up a 2.3 million tonne per annum (mtpa) cold rolling mill complex to manufacture high-grade automotive steel in Bellary district.

Sesa Goa has decided to shut down operation of its two plants in Goa owing to scarcity of iron ore. This could see the stock drift lower in trade.

Nitco is planning to go in for a corporate restructuring exercise of its debt to bring down the burden of repayment. On the other hand, DLF is also planning to lower its debt burden to Rs 17,000 from Rs 23,000 crore.