Indian Markets Outlook for the week – 29.12.2014 to 02.01.2015

Indian Markets Outlook for the week – 29.12.2014 to 02.01.2015

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.