Markets may open on a soft note following lacklustre global cues and lingering concerns of impact on India Inc., after larger-than-expected half-a-percentage point rate hike yesterday.
The Nifty futures on the Singapore Exchange were up 7 points, at 5,584.
Earnings season for the June quarter has been a mixed bag, going forward analysts are concerned that the 50 basis point rate hike may erode margins and crimp corporate profits. Interest rate sensitive sectors such as banking, auto, infrastructure and real estate may feel the heat going forward. Markets may continue to remain jittery ahead of the futures and options expiry on Thursday.
Asian markets were trading mostly lower on Wednesday morning as US debt worries loomed. Japan’s Nikkei Stock Average was down 0.6%, Hong Kong’s Hang Seng Index was off 0.1% and China's Shanghai Composite index slipped 0.4%.
Back in India HCL Technologies will be closely watched after consolidated net profit for the June quarter was reported at Rs 510 crore and revenue at Rs 4,300 crore.
Among the India ADRs trading on the Nasdaq Stock Exchange, MTNL was top loser, down 4.7% , followed by Sterlite Industries and ICICI Bank.
In the futures and options segment, FIIs (Foreign Institutional Investors) were net buyers of Rs 687 crore yesterday. FIIs sold index futures of Rs 611 crore, bought index options of Rs 1909 crore and sold stock futures of Rs 897 crore. In the cash segment FIIs were net sellers of Rs 177 crore, while the Domestic Institutional Investors were net buyers of Rs 31 crore.
