– Indian markets are expected to go up as many exit polls are suggesting BJP to clinch power in Maharashtra, the biggest state from an economical activity point of view. But anything comes against exit polls, then markets will take the downturn. BJP already has a majority in Lok Sabha but lacks power in Rajya Sabha (upper house) because of its less number, but by having Haryana and Maharashtra in its kitty, it would become easy for PM Modi to pass any reformative legislature from both the houses of the parliament.
– MCX Gold and COMEX Gold both look positive for the short term as equities still looks confusing and a lot of movement is expected to come over in the coming few days because of global macro-economic data releases in this week. MCX Gold will remain upbeat also because of buyers standing at lower levels, which gives support to prices if it goes down.
– Axis Bank NII (Net Interest Income) went up. Axis bank is expected to go up if goes above 405.
The following companies will see volatility on Monday because of their quarterly results. Alembic Pharma, Ultratech Cements, LIC Housing Finance, Force Motors, Just Dial, United Spirits, SKS Micro-finance and Idea Cellular Ltd. Idea Cellular is expected to rise up, if closes above 156.25.
– Globally, a cautious week is ahead as US will showcase its CPI data which is expected to come on Wednesday and Manufacturing data i.e. PMI on Thursday. Recent developments have shown that US has a worry of having low inflation, which is not good for the economy, which has injected so much of the USD in the economy i.e. QE. Too much money in the system reduces the value of the domestic currency, which increase prices or inflation, but in the case of the US this is not happening and as a result US Fed is confused and thinking whether to go for easing more money or should wait and see the later developments. Wednesday’s CPI data are very important from markets point of view across the globe.
– This week is full of major events across the globe and the UK is not different from that. Bank of England (BoE) will decide the interest rates for future; BoE is planning to increase interest rates and tighten monetary policy for a while now. UK will also project Retail Sales data, which will show the consumer confidence over the economy by their spending levels. UK will also give GDP data on Friday which will keep the GBP and other currencies on edge.
– China will reveal its GDP data for its Q2, 2014. Analysts expect Chinese GDP to shrink down by 25 basis points to 7.25% from 7.5%. If data beat estimate then Commodity prices could shoot up, especially base metals. HSBC PMI (manufacturing data) too is in line this week in China.