Pre-Market: Sideways trade likely
Global markets firm
The markets are likely to trade sideways today with a positive bias tracking global cues. On the domestic front, traders would be watching out for the inflation data for May due Thursday, which together with the IIP data released earlier this week could prompt the RBI to slash key rates.
"A near-zero reading on IIP, along with the S&P downgrade warning has raised hopes that the RBI will reduce interest rates to support growth,” said Dipen Shah, Head (Fundamental Research), Kotak Securities.
Asian shares rose on Wednesday, following gains in European and the US markets. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.2%, after Wall Street stocks gained more than a per cent on Tuesday, led by cyclical sectors. Japan's Nikkei average opened up 0.2%.
Back home, the Nifty is likely to seek support around 5,075-5,045, while it can face resistance around 5,160 – 5,185, analysts say. At 705 am Indian Standard Time, the SGX Nifty was trading at 5,132 – up 0.2%.
Among individual stocks, DLF could be in focus today on reports that it has sold its entire stake in subsidiary Adone Hotels and Hospitality to a Kolkata-based consortium for Rs 567 crore.
RIL has warned that production at its KG-D6 field will continue to decline as government is not approving investments needed to boost output. This could see the stock come under some pressure today.
JSW Steel reported that its production in May 2012 grew by 25% to 7.24-lakh tonnes over the same month a year earlier.