Markets may marginal notch gains in opening trades tracking subdued global cues as cautiousness prevails ahead of quarterly earnings season. The Nifty futures on the Singapore Exchange advanced 18 points, at 4,912.
The Nifty played catch up and rallied on Friday, analysts said that going forward markets will take cues from the IIP (Industrial Production) data for the August on Wednesday, the WPI (Wholesale Price Index) for September on Friday and the second quarter results which kick starts with Infosys numbers on Wednesday this week.
Nifty touched a high of 4,922 on Friday, but the rally may peter out going forward. AK Prabhakar from Anand Rathi said, “The Nifty will face resistance around 5,050 and then it will correct to 4,350 levels.”
Economists expect IIP at around 5.5% y-o-y for August against 3.3% reported for July. Analysts expect India Inc. to report the worst quarterly results in two years as rising interest rates and high inflation will dent profitability.
Prabhudas Lilladher in the earnings preview said, "Profit after tax of Nifty 50 companies (excluding oil & gas) continues on downward trajectory and is expected to post anemic 6.8% growth y-o-y." Prabhudas Lilladher expects revenue growth at 15.5% y-o-y and Ebitda margins (ex-BFSI) to decline by 149 bps y-o-y.
