After posting gains for five successive weeks, the Indian stock market may well see some consolidation next week. Movements are likely to be a bit rangebound for a better part of the week, although a few front line stocks are expected to see some hectic buying amid slightly easing concerns about the economy following a drop in inflation.
Adani Enterprises, Apollo Hospitals Enterprises, Divi's Laboratories, IFCI, Thermax, Hindustan Copper, Welcorp, TV Today, Dish TV India, Jet Airways and SpiceJet are among the other companies that are scheduled to announce their quarter results next week.
Heavy buying by Foreign Institutional Investors contributed significantly to the market's gains last week, and inflow from this set of investors is likely to remain fairly strong, mainly on hopes the central bank will resort to some monetary easing in June, following a drop in wholesale price inflation.
The U.S. markets ended on a high note on Friday (17 May) on the back of some impressive economic data, and this is likely to set up a fairly strong start for Asian markets on Monday. Investors back home are likely to take cues and indulge in some buying early on.
IT bellwether Infosys will be in focus following the Income Tax department slapping a fresh tax demand of Rs 582 crore on the company for financial year 2009. The company, which is already contesting additional income tax demands to the tune of nearly Rs 1200 crore for four fiscal years beginning 2005, has stated that it will take legal recourse against the fresh tax demand as well.
Shares from rate sensitive banking, automobile and realty sectors will see a few bright spells during the course of the week. However, not many of them are likely to sustain at higher levels, as some profit taking is very much on the cards.