Markets may notch gains in the morning session tracking gains across Asia. The Nifty futures on the Singapore Exchanged added 23 points, at 5,550.
On Tuesday markets corrected due to a slew of negative news flow – weak IIP data, below estimated Infosys guidance and fear of sovereign debt contagion spreading to Italy and Spain.
Brokerages such as CLSA retained underperform rating on IT bellwether Infosys after guidance missed analyst expectation. CLSA in the research note said, "Infosys management gave dollar revenue guidance of $1,671 million, lower than expectations of $1,681 million, falling short of street expectation. There are downside risks to the September quarter earnings as well and we advice investors to remain cautious." The Infosys stock is expected to remain weak for some time.
After being net buyers for 11 consecutive sessions, Foreign Institutional Investors turned net sellers of Rs 969 crore in the Indian markets, while the Domestic Institutional Investors were net buyers of Rs 287 crore according to the data collected fom the Bombay Stock Exchange.
Markets across Asia were trading firm in the morning session after China’s GDP growth expanded faster than expected at 9.5% in the April-June quarter. Hong Kong’s Hang Seng Index advanced 0.7%, China’s Shanghai Composite advanced 0.5% and the Japan’s Nikkei Stock Average was flat at 9,027.
Back in India, Emkay in the morning note said, “Overall data indicates the Nifty has an immediate support placed at around the 5500 levels. With most of the Asian indices trading in positive territory today, Nifty is expected to exhibit a similar kind of move. Resistance is likely to prevail at the 200-day Exponential Moving Average placed at around the 5585 levels.”