India Stocks Outlook: To eye overseas markets, April IIP data Thu

[K.Karthik Raja]

India Stocks Outlook: To eye overseas markets, April IIP data Thu
Wednesday, Jun 11

MUMBAI - Share indices are likely to take cues from overseas
markets in early trade Thursday, and then turn to India's industrial
growth data for April, to be released at 11AM.
Industrial growth in April is likely to improve from a six-year
low of
3.0% in March but is still seen significantly lower than last year,

Today, Bombay Stock Exchange's 30-share Sensex ended at 15185.32,
up 296.07 points, or 2%, from Tuesday.
National Stock Exchange's 50-share Nifty closed at 4523.60, up
73.80 points, or 1.7%.

India VIX or volatility index fell 2% from the previous session.

The bias is positive for the next few session, as the share
market has factored in most of the negative cues for the immediate
short term,

However, the outlook for Indian equities remains weak, they said.
We expect consolidation (in the Indian stock market) to continue.
Serious money is seen on the sidelines and FII inflows will be muted.
We believe that inflation will remain Reserve Bank of India's "top
concern " We might see a hike in CRR or interest rates. RBI may not
even wait for the policy.
Another cause of concern for the market is that corporate earnings
growth is seen slowing down, may be even below 20% this year, he said.
We believes that only a steep fall in commodityprices, especially
that of global crude oil will improve the investor sentiment.
Pharmaceutical shares could see some more action in coming
sessions,especially the mid-cap pack, on hopes of more merger and
acquisition activity
Ranbaxy Laboratories today said Daiichi Sankyo will buy a
controlling stake in the company at 737 rupees per share.