UPCOMING EVENT AND PROFIT SUMMARY FOR 01 JUNE 2015

The market has seen consolidation on Monday ahead of RBI policy scheduled to be announced on June 2. FMCG, capital goods and select technology stocks gained while private banks were under pressure. The 30-share BSE Sensex advanced 21 points to 27848.99 while the 50-share NSE Nifty fell 0.25 point to 8423. The broader markets closed flat  at 8423. pharma and financial services were likely to see strong growth this year and that IT services firms could surprise positively. On the other hand, earnings of capital goods, engineering, steel and cement companies were likely to disappoint. Today Private banks like HDFC Bank and Axis Bank fell more than 1 percent and ICICI Bank was down 0.3 percent. Sun Pharma was the biggest loser on Sensex today, down 9 percent after reporting disappointing set of earnings in Q4. The company said a decline in sales and higher integration costs impacted margins in Q4.

UPCOMING EVENT: RBI POLICY ON 2 JUNE 2015

The Reserve Bank of India will most likely cut the benchmark repo rate by 25 basis points at its monetary policy review on Tuesday. If the rate cut did not come through, it would be bad for the market in the short term. A big risk for the Indian market in the coming months was a likely reversal in low interest rates in developed markets. the RBI will be doing the same arithmetic that we are doing but much of the seven and a half percent first quarter growth rate came because indirect taxes rose very sharply because of the excise duties that were imposed on diesel and petroleum products and because at the same time subsidies fell because of the decline in all oil prices. So they are going to look at the other underlying variables and that would still suggest that the economy is not completely out of the woods and therefore is that, perhaps there is a 25 bps rate cut tomorrow. 

TOP GAINERS AND LOSERS ARE:

Sectors	Change %	Top Gainer/losers Company
Infrastructure Developers & Operators	3.09 %	Larsen & Toubro
FMCG	2.47 %	Hind. Unilever
Refineries	2.08 %	Reliance Inds.
Tobacco Products	0.7%	ITC
Automobile	1.16 %	Maruti Suzuki
Pharmaceuticals	-9.1%	Sun Pharma.Inds.
Telecomm-Service	-2.2 %	Bharti Airtel
Entertainment	-1.08 %	Zee Entertainmen