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Markets are likely to track third quarter earnings of IT major Infosys which are scheduled to be announced before the markets open for trading. Further, investors would focus on the November index of industrial production data to be released later today.
At 0800 hrs, the SGX Nifty was down 22 points at 6,167.
Technical analysts are of the view that breakouts or breakdowns for the benchmark Nifty could go till 6300 or 6100 respectively depending on the market trend.
Meanwhile, Asian shares eased on Friday as investors adopted a cautious stance ahead of China's December traade data due for release later today. The Shanghai Composite eased 0.4%. Shares in Japan extended losses. The benchmark Nikkei was down 0.4%. However, Hang Seng was marginally up 0.2% while Straits Times was trading flat with a positive bias.
Further, stocks on Wall Street ended flat amid a volatile trading session on Thursday as investors adopted a wait-and-watch stance ahead of the non-farm payrolls data due for release later today. A better-than-expected data would provide the US Fed room to continue reducing its monetary stimulus measures. Last month, the US Fed had announced that it will start trimming its bond purchases by $10 billion to $75 billion.
The Dow Jones industrial average eased 0.1% lower to end at 16,445. The S&P 500 ended flat at 1,838. The Nasdaq Composite fell 0.23%, to close at 4,156.
Stocks in Focus
While Infosys’ October-December 2013 (third quarter of FY14) earnings are expected to be muted due to seasonal weakness, there is great interest from all corners in the announcement, to be made on Friday.
Observers are keenly looking forward to the Bangalore-based information technology (IT) giant’s comments on the demand environment, near-term outlook and the recent churn in top management. Most analysts also expect the country’s second largest IT services company to raise its revenue forecast for FY14.
According to estimates of brokerage companies, Infy is likely to post a tepid one or two per cent sequential growth in revenue for Q3 of FY14. This is mainly due to low volume growth, amid Christmas and New Year holidays and furloughs in the key markets of America and Britain.
Shares of gold loan companies like Muthoot Finance and Manappuram Finance may extend gains after the Reserve Bank of India (RBI) has eased the norms for extending loans against gold jewellery as collateral.
Auto majors will be in action after passenger car sales in the country fell for the first time in 11 years in 2013 as customers continued to defer purchases amid a slowdown.
Siam data show passenger car sales fell 9.6 per cent to 1,807,011 vehicles from 1,998,703 the previous year. A poor market has compelled companies to cut production of these 13 times over the past 18 months.
United Spirits will see some action on reports that the company is now considering the sale of the entire asset of Whyte & Mackay and not a major part (about 70 per cent) of the company.
