Market Cues: Will inflation data be key trigger this week?

Stocks are likely to see a choppy trading this week as investors on Dalal Street will be influenced by June inflation data, corporate results and the progress of monsoon, say analysts.

The BSE Sensex and NSE Nifty had a listless session closing on a flat note on Friday as the market awaits inflation data, which will decide the Reserve Bank of India's move on July 31.

Analysts said that apart from inflation, Presidential elections and first quarter earnings from RIL this coming Friday will be the key events to watch out for in the near-term.

The BSE benchmark declined 18.85 points to close at 17,213.70 and the NSE benchmark slipped 8 points to 5,227.25 on Friday.

The Indian rupee performed quite better on Friday, appreciating by 63 paise to 55.31 against the US dollar from 55.94 a dollar in previous session.

Stocks in News

The I-T department is looking to recover Kingfisher's tax dues from the money that lenders raised by selling non-core assets. A notice to this effect served on KFA's main lender SBI.

Meanwhile sources indicate that Kingfisher pilots plan to move labour court over salary dues. The pilots could move court sometime this week.

iGate reported its Q2 results. The global IT services provider fell short of expectations, even as it saw a 217.5% jump in net profit to USD 12.7 million on a year-on-year basis while its  revenues jumped 57.3% to USD 268 million.

In earnings to watch, expect a tepid dollar revenue growth from MindTree this quarter. However, margins are expected to improve. Meanwhile expect a strong revenue growth from Exide on a YoY basis.

In a CNBC-TV18 exclusive, sources indicate that M&M  and Ssangyong could be working on two-three new SUVs. The proposed new SUVs will be aimed at emerging markets which could be unveiled by 2014.

And sources suggest that Tata Power and Adani Power moved CERC on the Indonesia coal issue. Indonesia imposed a 25% export tax on coal.

In a CNBC-TV18 exclusive, sources say that Tata Motors is conducting a product review of passenger vehicles. Accenture will be conducting the review of Tata Motors’ passenger car business. Accenture will advise the company ways to increase its market share, say sources.

Nalco in talks to buy Indonesia’s Ashan Aluminium for Rs 8000 crore.

Nitco Tiles heads for CDR, reports the Business Standard.

Coal India threatens to cut supplies to UltraTec h’s four cement plants, reports the DNA.
 
Coal India signs MoU to buy a 50% stake in IOC’s explosives business, reports the Economic Times.

Power Grid is in JV talks with SAIL and NALCO to manufacture transmission equipment, reports the PTI.

Northgate Tech ’s board meets today to consider scheme amalgamation of Northgate Com Tech and Green fire Agri Commodities with itself.

Aurobindo Pharma is mulling to challenge the AP governments closure order of the company’s AP unit, reports the PTI.

Kingfisher Airlines cancels 40 % of its flight as pilots struck work to protest non- payment of wages. The airline promises to pay pilots February salary today, reports the Times of India.

LIC Housing Finance plans to raise Rs 1,100 crore via the QIP route.
 
SGX will launch Nifty Options from today, reports the DNA

Earnings Results Today

Castrol, Exide, South Indian Bank, Tata Coffee, Reliance Industrial Infra, Supreme Infra, Maharashtra Scooters

Big Earnings Results This Week

April-June earnings will also be closely eyed. Axis Bank reports its results on Tuesday, followed by Bajaj Auto on Wednesday.

Kotak Mahindra Bank, Hero MotoCorp and Dr.Reddy's Laboratories will report fiscal first quarter earnings on Thursday.

Energy conglomerate Reliance Industries and Asian Paints will announce April-June earnings on Friday.

US Markets

US market snapped a six-day losing streak on Friday, with the S&P500, Dow and Nasdaq gaining around 1.6% each. The indices were propelled by sharp gains in financials following JPMorgan's earnings report. For the week, US markets ended flat.

JPMorgan Chase soared on Friday after the financial giant beat Wall Street expectations, despite the USD 4.4 billion loss from the "London Whale" trading debacle. Still, the bank earned an overall profit of nearly USD 5 billion.

Consumer sentiment index in the US fell to 72, its lowest level since last December, after reaching 73.2 in the final June report. Producer prices unexpectedly rose 0.1% in June despite big drops in energy prices, according to the labor department.
 
Keep an eye out for retail sales numbers from the US, which are expected to decline 0.2% in June. Meanwhile, the Empire State Manufacturing Survey Index is expected to rise to 4.50.

This week will also focus on Federal Reserve chairman Ben Bernanke’s twice-yearly grilling by lawmakers in Congress on Tuesday and Wednesday, against a background of lackluster growth at home and a festering sovereign debt crisis in Europe.

European Markets

European markets rose to their highest level in more than a week on Friday as better than expected Chinese growth data boosted gains in mining stocks and helped offset worries over the euro zone debt crisis.

The DAX surged over 2%, while CAC, FTSE and Italy gained around 1%.

German chancellor Angela Merkel says she is confident the German parliament will approve Spain's bank aid plan when lawmakers vote on the issue this coming Thursday. Merkel also said that eurozone has yet to resolve the issue of whether it's bail out funds or recipient states would be liable for any future aid payments.

Meanwhile, Spain says that the new austerity measures will help it save 56.4 billion euro between now and 2014. However, that estimate is still 8.6 billion euro less though than what Madrid promised Brussels to win its banking aid cash. But Spain's economic ministry says the latest forecast does not include a planned hike in energy and environment taxes.

And in Italy, officials are dismissing Friday's ratings cut from Moody's as not representative of the country's economic position. However, new economy minister Ritorio Greely says he sees things growing worse, and he warned the country's economy will contract to just less than 2% this year. That is worst than the current official forecast for a 1.2% contraction.

Currency Corner

The euro saw a fresh two-year low of 1.2162 to a dollar on Friday, but halted its decline on speculation that signs of a global slowdown will prompt the biggest central banks to add to measures to support growth. The dollar index was marginally negative at 83.3 on Friday from high of 83.8 on Thursday.

Commodities

Crude prices were near a 1-week high on expectations that fuel demand may rise amid an economic recovery in the US. Brent is now back above USD 102 per barrel, after witnessing a 1.3% gain on Friday. For the week, Brent gained over 4%.

From the precious metals space, gold continues to trade around USD 1590 per ounce.