The Sensex may flat with a negative bias on the back of mixed cues from the Asian markets and the SGX Nifty trading in the negative down 16 points at 5,795. Over the past four trading sessions, the BSE benchmark index has dropped to reach their lowest closing level in more than a week as macroeconomic concerns continue to weigh.
Some of the concerns weighing on the minds of the investors are the FIIs being net sellers in the past three trading sessions and the central bank planning to raise short term interest rates by a minimum of 25bps at a policy review to be held next week. Also the IT space is under pressure as all the major IT companies have hinted their margins will be under strain due to the hike in wage costs. Index heavyweight, Reliance Industries too is moving south due to the drop in gas production in its D6 block which may play a spoil sport.
On the Asian front, the indices are trading mixed with Hang Seng down nearly 0.1% on concerns that Beijing may tighten its monetary policy trumped by strong earnings reports from three of the top four Chinese banks coupled with near three-year high finish for U.S. stocks. KLSE Composite and Straits Times are down 0.1% each followed by Seoul Composite shedding 0.6%. Japanese markets are closed for holiday.
On the positive side, Shanghai Composite is the top gainer up 0.2% while Jakarta Composite and Taiwan Weighted added 0.1% each.
The results to watch out for the day are SAIL, Sterlite, Corporation Bank, Dena Bank, TVS Motor and IDFC