Indian Markets Outlook for the week – 22.09.2014 to 26.09.2014
Benchmark stock indices are
expected to move within a narrow range next week amid
lack of any major triggers.
Equities may witness volatility as the September derivatives
contract expires next week.
However, the overall outlook for equities remains positive
due to continued inflows from
foreign investors. When market sentiment is strong and
small- and mid-caps are making
new highs, our advice to investors would be to remain
discrete and look to stay
invested in quality companies with good management track
record.
Encouraging economic data and
easing crude oil prices over the past few sessions have
also aided the prevailing upbeat
sentiment. Platform for India has become better as crude
corrects, WPI (Wholesale Price
Index inflation) lowers and fiscal structure improves just
awaiting reforms to start. Some
market participants believe investors will turn cautious in
the latter part of the week ahead
of the Reserve Bank of India's monetary policy review,
which will be held on Sep 30.
They broadly expect the National Stock Exchange's 50-
share Nifty to move between 7900
points and 8250 points.
Yesterday, the Nifty ended at
8121.45, up 6.70 points or 0.1% from Thursday's close and
the S&P BSE Sensex ended at
27090.42, down 21.79 points or 0.1%. Rate-sensitive
stocks, such as those of banks
and capital goods, may rise next week as we does not
expect any negative surprises
from the RBI policy review. In the absence of any major
domestic triggers, investors will
look at overseas markets for direction. Apart from
overseas markets, data on
rainfall will also be eyed by market participants.
Action may be largely
stock-specific, with mid-caps continuing their rise. However, some
market players believe frontline
stocks will be better plays. Stocks of information
technology companies are expected
to rise next week, with Tata Consultancy Services
leading the pack. Stocks of
private banks, pharmaceutical companies and construction
companies are also expected to do
well next week in the coming week. Stocks of
Jaiprakash Associates may rise on
Monday as the company said post market hours
yesterday that it has inked a
pact with Shree Cement to sell its cement grinding unit of 1.5
mtpa capacity at Panipat,
Haryana, for 3.6 bln rupees.
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )