BSE Sensex and NSE Nifty start is likely to be sombre on sluggish global cues. Markets are likely to extend the decline in early deals, and Nifty may retest 8500 level.
Traders will be cautious with a report from private research firm stating that the underlying business sentiment in India during July-September quarter of calender 2015 is likely to remain subdued amid concerns of weak factory data and potential impact of deficient monsoon.
There will be some buzz in the telecom stocks, as the telecom department has written to telecom operators to take steps to optimise radio frequencies in their networks and analyse the reasons for call drops, and report back to the government on the action they have taken to deal with the matter by July 31.
However, there is good news for foreign investors, as with the introduction of composite cap in foreign investment policy, portfolio investors can invest up to 49 percent in multi-brand retail and e-retail companies without government approval. There will be lots of important result announcements too, to keep the markets in action.
The Indian markets lost their way completely in the final hours of last session and slumped by around a percent despite better than expected earnings from IT major Infosys, mainly on profit warnings by Sun Pharma, higher bad loans for HDFC Bank and weaker-than-estimated earnings by Hindustan Unilever.
Asian stocks got off to a bumpy start on Wednesday after earnings dragged down U.S. equities, while the dollar edged away from highs hit earlier this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 percent in early trading.
Japan’s Nikkei stock index was down 0.8 percent in early trading, pulling away from Tuesday’s nearly four-week closing high.