Tracking muted cues from Asian peers, the Indian benchmarks may open on flat note as weaker corporate earnings report coupled with government firm stand on retrospective tax might keep investors at bay. Most of the Asian peers were trading lower as investors sentiment were dented by lower-than-expected PMI data from China. As per HSBC final purchasing managers' index (PMI) data, China's factory output contracted in April, with a reading of 48.9, marking its fastest drop in a year. On the global front, US stocks rebounded sharply on Friday after sharp selloff on Thursday. Back home, the finance ministry is unlikely to dilute its stance on the issue of tax matters in revised bilateral investment treaty (BIT) model. This may restrict foreign investors to further invest in the Indian markets. On the corporate front, shares of Aditya group companies will be in focus as the Kumar Mangalam promoted company announced to consolidate its retail business by merging its Aditya Birla Nuvo Ltd (ABNL)-operated fashion retailing business with Pantaloons Fashion & Retail.
