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    Earnings data to keep the markets ticking

    Synopsis

    Share prices are expected to remain flat-to-negative this week as foreign investors rebalance their exposure to Asian emerging markets. The corporate earnings calender will keep the markets busy during the week.

    MUMBAI: Share prices are expected to remain flat-to-negative this week as foreign investors rebalance their exposure to Asian emerging markets. The corporate earnings calender will keep the markets busy during the week. Mutual funds may bring in the much-needed support as they continue to remain net buyers in equities. However, the overall trend is expected to remain stock-specific. Some of the key companies that will announce their March quarter results include Pidlite Industries, ING Vysya, Tata Motors and Jet Airways on Tuesday; IBP on Wednesday; BPCL, Kochi Refineries and Tata Steel on Thursday; State Bank of India, Balaji Telefilms, Lupin Laboratories, Bank of Baroda and Dena Bank on Friday. Foreign institutional investors (FIIs) are facing a declining global risk appetite. Oil prices continue to be volatile as the northern hemisphere gets into the peak of summer. FIIs reported net outflows of $63.5m till Thursday. Much of the selling has been absorbed by strong buying by domestic mutual funds. They reported net inflows of Rs 663 crore last week to Thursday, which is keeping the market afloat. The biggest worry now is that sooner-or-later the buying by these funds will run out of steam. Over the past six weeks, mutual funds have pumped in Rs 2,500 crore into the equity markets. Mutual funds are coming up with fresh mop up of funds through the sale of new equity-oriented schemes. The increase in the weightage of Taiwan in the Morgan Stanley Capital International (MSCI) Asia ex-Japan index to over 23% from 18% would trigger some re-balance of holdings. India's weightage fell marginally to 7.2% from 7.5%. Over the past one week, FIIs reported net inflows of $819m in Taiwan. Net inflows in Korea stood at $85m. Brokerage firm JP Morgan is neutral on India, positive on Taiwan and negative on Korea. This is perhaps the most diverse view in the emerging markets category. The three markets have absorbed nearly $70bn in FII inflows over the past two years.
    The Economic Times

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