Market may slide further

The market may witness further selling pressure hit by the Reserve Bank of India's (RBI) aggressive rate hike at a policy review on 26 July 2011. The market saw a steep slide recently on concerns that higher interest rates will crimp corporate profit growth. Fears of global economic recession added to the decline on the domestic bourses recently.



On Monday, 8 August 2011, Indian shares will react to the US government's key monthly jobs report for July 2011. The data could provide cues on the health of the world's biggest economy. The United States averted a debt default on 2 August 2011, when President Barack Obama signed a bill raising the country's debt ceiling into law.

Coal India replaces Reliance Infrastructure in the 30-share BSE Sensex with effect from Monday, 8 August 2011. In another change in the constituents of the barometer index, Sun Pharmaceutical replaces Reliance Communications in Sensex from that day.

The Q1 June 2011 earnings season is drawing towards a close. Investors are focusing on the post-Q1 June 2011 result management commentary to gauge the future earnings outlook at a time when Indian firms are witnessing cost pressures amid rising interest rates and staff costs.

M&M announces Q1 results on Monday, 8 August 2011. ABB, Tata Communications, Mahindra Satyam, GMR Infrastructure and VIP Industries announce quarterly results on Tuesday, 9 August 2011. Tata Power and Rural Electrification Corporation unveil Q1 results on Wednesday, 10 August 2011. Tata Motors, Reliance Infrastructure, Reliance Power, Castrol India and Shipping Corporation of India unveil quarterly results on Thursday, 11 August 2011.

Tata Steel, Hindalco, Coal India, National Aluminium Company, Jaiprakash Associates, Unitech and HPCL unveil Q1 results on Friday, 12 August 2011. State Bank of India, Aditya Birla Nuvo and Shipping Corporation of India unveil Q1 results on 13 August 2011.

The government will announce industrial output data for the month of June 2011 on Friday, 12 August 2011. The index of industrial production, or IIP, rose 5.6% in May from a year ago. The figure for April was revised to 5.8% from 6.3% estimated initially.

On the global front, all eyes are now on the US Federal Reserve's one-day policy meeting on Tuesday, 9 August 2011. At their last meeting in June 2011, Fed officials decided to keep the central bank's balance sheet at a record to spur the slowing economy after completing $600 billion of bond purchases. The Fed has held its target for the short-term federal-funds rate inside a lowest-ever range of 0% to 0.25% since December 2008.