After registering the biggest gain in five weeks, the 30-share Sensex is tipped to consolidate a three-week rally amid government measures to stem fears over Minimum Alternate Tax (MAT), steady progress of the Monsoon rains and optimism over a third interest rate cut by the Reserve Bank of India (RBI) early next month. The 30-share benchmark advanced 148.15 points or by 0.53 per cent to finish at 27,957.5 on Friday. However, volatility at Dalal Street may heighten this week amid the expiry of the May Futures & Option (F&O) contracts on Thursday with traders set to roll over their positions from the month of May to June. The next set of March corporate earnings will be eyed with companies such as Tata Motors, Tech Mahindra, IDBI Bank, GAIL, Coal India, Sun Pharma, IOC, NTPC, Hindalco, Tech Mahindra, Canara Bank, BHEL, BPCL, Bank of India, Reliance Power and HPCL in focus this week. The progress of the South-West monsoon that has arrived over Sri Lanka and is set to hit the coast of Kerala around May 30 will also be watched by investors, as it is a key element for the agri-based rural economy. The Modi government will complete one year in office this week with the NDA’s ability to reach a political consensus on key bills such as land acquisition reform & GST the only question mark in its one-year reign which has witnessed an improvement on the fiscal front, revival of foreign investor sentiment and a kick-start of stalled infrastructure projects. However, Fed Chair Janet Yellen’s warning that a US interest rate hike remains on the cards in 2015 which pulled down Wall Street on Friday, may keep investors a bit jittery, weighing on the Sensex. Indian equity benchmarks may open a tad higher on Monday as indicated by the SGX CNX Nifty Index futures for May delivery which rose 0.01 per cent to 8,443.50 at 10:37 am Singapore time. Meanwhile, Asian shares were in bullish mode as stocks in mainland China soared amid speculation of further stimulus to bolster growth in the world’s second biggest economy, while a weaker yen powered Japanese stocks as the dollar strengthened after Yellen termed a 2015 rate hike as “appropriate”.
