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Markets are likely to open marginally lower, amid mixed overseas cues, with Sun Pharma in focus while Wipro could be under pressure post its weak March quarter earnings.
At 8:30AM, the early indicator SGX Nifty was down 24 points at 8,388.
"Technically, the Nifty faces a major hurdle at 8,540 and 8,600 levels. Supports exists at 8,350 and at 8,270. A break of 8,270 will drag the sentiment heavily. Investors should look for adding Technology stocks in the recent weakness," said Shrikant Chouhan, head of technical research, Kotak Securities in a note.
Add Amar Ambani, head of reasearch at IIFL: The outlook is a flat start. Global cues are not really encouraging. The indices will look at minimizing any further damage unless the weather forecast takes a toll on the market. Yes Bank and Mastek results will be eyed. Attention will be on stocks like Sun Pharma again which shed over 9% on Tuesday after Daiichi sold its stake at a discount. While different interpretations are doing the round, Daiichi’s decision to exit Sun may be driven by its philosophy to not stay in a deal where it is a minority holder, says one. FY15 is turning out to be the worst year in last decade, in terms of PAT growth."
GLOBAL MARKETS
Most Asian stock markets were trading higher on Wednesday with shares in Japan gaining the most and the benchmark Nikkei reclaiming the 20,000 mark and hitting a new 15-year high.
The Nikkei was up 1.1% at 20,126. The recent liquidity push by China's central bank to increase lending and boost economic growth also aided sentiment. The Shanghai Composite was up 1% while the Hang Seng also extended gains and was up 0.4%. However, Singapore's Straits Times was down 0.1%.
US stocks ended mixed with Dow Jones retreating from 18,000 levels amid lower-than-expected earnings from select corporates while the broader S&P 500 ended flat with negative bias. However, the tech-laden Nasdaq ended with marginal gains amid reports of a possible merger in the biotech sector.
The Dow Jones ended down 85 points at 17,949.59 and the S&P 500 ended down 3 points at 2,097.31 and Nasdaq Composite ended up 20 points at 5,014.10.
STOCKS IN FOCUS
Sun Pharmaceutical will be in focus after media reports suggest that the company's promoter Dilip Shanghvi has not purchased any additional shares in the company following the stake sale by Daiichi Sankyo.
Wipro will remain subdued after the IT major reported disappointing earnings with just two per cent growth in net profit for the March quarter compared to the year-ago period. The March quarter performance was hit by currency volatility and softening of demand in the key energy sector.
Tyre stocks may continue to remain under pressure after rise in global rubber prices.
Cimmco is likely to firm up after it received licence from the government for the manufacture of various items for defence.
Gitanjali Gems will be in focus after the company said it is merging its subsidiaries with the company in an effort to rationalise the group structure and create synergy of operations.
VST Industries may see some pressure after the company's net profit in the March quarter dipped 22% to Rs 41 crore compared with Rs 52 crore in the same quarter last year.
Natco Pharma will be in focus after generic drug maker Teva Pharmaceuticals made an $40 billion offer for rival Mylan, which is the Indian firm's marketing partner for the generic version of Copaxone.
Further, Yes Bank, Mastek and Rallis India will be in focus ahead of their March quarter earnings later today.
