Indian Markets Outlook for the week – 29.12.2014 to 02.01.2015
( www.rupeedesk.in )
Stock Indices are seen consolidating in the coming week, with the
National Stock Exchange's Nifty likely to move between 8145 and 8250 points in the absence of
any major triggers.
The 50-share index ended at 8200.70, up 26.60 points or 0.3% following
a volatile session today, while the S&P BSE's Sensex ended at 27241.78, up 33.17
points or 0.1%.
The underlying bias is bearish, with market participants agreeing that
unless the 8380-point mark is breached, the market will remain rangebound.
There was a lot of selling by FIIs (foreign institutional investors)
this month, more so than historically seen for December and rupee is also a big concern. The
continued depreciation of the rupee, which closed at 63.5700 a dollar yesterday, down nearly
0.1% from Wednesday, is seen weighing on sentiment.
A weak rupee will however offer some support to the information
technology sector, which underperformed the market this week due to cross currency issues.
Also, investor sentiment has been bolstered as President Pranab
Mukherjee yesterday signed two ordinances--one facilitating raising foreign direct investment in
the insurance sector and the other paving the way for coal block auctions.
Overseas markets will also be watched. China's manufacturing data and
hopes of the People's Bank of China boosting liquidity will lend cues to the metal sector.
China is the largest base metals consumer, and influences volumes for metal companies.
Automobile companies' stocks will be in focus ahead of the release of
December sales numbers. Market participants will also be cautious ahead of the first bankers'
retreat scheduled for Jan 2- 3.
Heads of all public sector banks and financial institutions, along
with Prime Minister Narendra Modi, Finance Minister Arun Jaitley, and Reserve Bank of India
Governor Raghuram Rajan, among others, will be in attendance.
( www.rupeedesk.in )