Inflation is likely to hog the limelight after public sector oil companies hiked petrol prices by Rs 5 per litre. Also, the Government will issue the inflation report for April. The headline WPI inflation print is estimated at around 8.5%. It was at 8.98% in March. Watch out for revision in February inflation.
Shares of oil PSUs will gain while that of auto makers may fall. Last week, the EGoM on fuel prices was deferred. It is tentatively scheduled for May 17-18. One has to see if the meeting materializes after all. And, if it does, will the Government bite the bullet and hike diesel and LPG prices as has been speculated?
Stocks are likely to fall at start given the weak global cues. US stock indices fell on Friday as commodities softened anew and the dollar advanced. European markets ended in the red amid persistent worries over the fiscal health of Greece and other peripheral eurozone economies. Most Asian stock benchmarks are down.
The overall outlook remains cautious. If the Nifty manages to hold above 5460, it might rise as high as 5680.
