Today,we expect a soft opening as most Asian markets are in the red. Results and commentary from top management of Infosys and Bajaj Auto could change the tempo later in the day. Stronger than forecast IIP data may also boost sentiment. Overall, the current phase of consolidation may extend for a few more days till there is further clarity on the health of the economy and India Inc. The NSE Nifty is likely to trade in a broad range of 5182 to 5310. Beware of the unusual spurt in some non-index stocks.
The bulls will hope the earnings season gives them more reasons to hold on to quality companies and dump the inferior ones. Infosys and Bajaj Auto are the big companies declaring their results today. We expect Infosys to report 0.4% QoQ growth in revenues and 6.3% sequential decline in PAT. For Bajaj Auto, we expect 65% YoY jump in revenues and 189.6% YoY jump in PAT.
IIP data for November is due around noon today, and monthly inflation data is scheduled to be released on Thursday. Industrial output is seen rising by 10% in November from a year earlier after expanding by 10.3% in October. Marketmen will watch these crucial data points for cues on what action, if any, the RBI will take on Jan. 29.
