Indian Markets Outlook for the week – 12.Oct.2015 to 16.Oct.2015 (expected to remain positive next week)

Indian Markets Outlook for the week – 12.Oct.2015 to 16.Oct.2015 
(expected to remain positive next week)
After gaining over 3% this week, the bias for benchmark indices is expected to remain positive next week, while Jul-Sep earnings of key index constituents and data on consumer price index-based inflation and industrial growth will be in focus.

Among index-constituents, Infosys, Tata Consultancy Services, Hindustan Unilever, Zee Entertainment Enterprises, and Reliance Industries will report Jul-Sep earnings next week. Market sentiment will also depend on data on CPI and index of industrial production.

The National Stock Exchange's Nifty is seen consolidating between the levels of 8000 and 8300 points next week. The 50-share benchmark index ended at 8189.70 points, up 60.35 points or 0.7% and S&P BSE Sensex closed at 27079.51 points, up 233.70 points or 0.9%.

Stocks of information technology companies will be in focus next week as the earnings for the sector are kicked off by Infosys and Tata Consultancy Services, the two index and sector majors.

Investors will also closely track Bihar assembly elections, which will begin next week. Voting for 49 seats in the first phase of polls will happen on Monday.

Among sectors, housing finance companies and select banks are seen outperforming as the Reserve Bank of India has cut risk weight requirements on certain home loans. This is also seen positive for stocks for real estate companies in the affordable housing segment over the long term.

Stocks of State Bank of India, IDBI Bank, and Bank of Baroda are seen outperforming the sector. The Bank Nifty is seen taking support at 17,170 points and facing resistance at 17,800 points. The banking gauge has ended its volatile week with modest gains of 2.5%.