The benchmark equity indices are likely to come under further pressure this week as investors await clarity on the general anti-avoidance rule (GAAR) and factory output data for March on the domestic front.
Clarity on the tax treaty with Mauritius and the rupee movement will also be keenly watched. The Sensex and Nifty lost over two per cent each last week to end at 16,831 and 5,087 levels, respectively.
Weekend elections in France and Greece are adding to pressure on stocks and commodities on Monday. In France, Nicolas Sarkozy was ousted as president by socialist Francois Hollande, who has indicated that he wants to renegotiate Europe’s fiscal compact, which aims to impose tough budget rules for Europe.
Asian markets also taking a beating, with Japan’s Nikkei Stock Average down 2.4 per cent. Back home, the Nifty is likely to seek support around 5,045-5,020, and may face resistance around 5,130-5,155, analysts suggest. At 710 am Indian Standard Time, the SGX Nifty was trading at 5,006 – down 1.4 per cent.
Among individual stocks, Ruchi Soya and Betul Oils could come under pressure on reports that the commodity futures regulator charged them with manipulation in guar gum futures.
Grasim Industries, Allahabad Bank, Indian Overseas Bank and Syndicate Bank will react to their respective March quarter numbers.
Godrej Properties plans to treble launches in 2012-13. The news can bring the stock back in focus today.
Kavveri Telecom is closing in on a private equity deal to raise around Rs 100 crore.
Also keep a tab on Bank of India, GSK Consumer, HDFC, OnMobile Global, SKS Microfinance and United Phosphorus as they will announce their respective March quarter results.
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