Pre-Market:Macro factors to decide market direction

Inflation data, corporate results and the developments at the monsoon session of Parliament will dictate the stock market trend this week.

Inflation data on Tuesday will be a key event for in a shortened trading week because of the Independence Day holiday on Wednesday, August 15.

Equally important will be the corporate earnings to be announced this week that will dictate the broad trend and stock specific moves. Among the prominent ones are Tata Steel and Coal India that will declare Q1 earnings on Monday, while Hindalco and Reliance Infrastructure will do so on Tuesday.

Asian markets were mixed early Monday, as hopes of stimulus from central banks were offset by weaker growth data from Japan.

Preliminary data showed that Japan’s economy grew at an annualised 1.4% in the April to June quarter, lower than an expected 2.7%. Japan’s Nikkei gained 0.1%, Australia’s S&P ASX 200 rose 0.6 %, and South Korea’s Kospi lost 0.4%.

Back home, among individual stocks, Kingfisher Airlines, Indian Oil, Reliance Communications and ONGC will react to their recently announced June quarter results.

Reliance RIL could be in focus today on reports that it has sold its 25% stake in an oil block in Yemen to Indonesia’s Medco Energi for about Rs 497 crore.

Shareholders of UK-based travel major Thomas Cook Group have approved the sale of 77 % stake in its India operations to Fairbridge Capital (Mauritius) Ltd for about Rs. 800 crore. This could see the stock come back in the limelight today.