Indian Markets Outlook for the week – 8.Mar.2016 to 11.Mar.2016 Seen Uptrend Next Week

Indian Markets Outlook for the week – 8.Mar.2016 to 11.Mar.2016
(Seen Continue Uptrend Next Week)

Equities are expected to continue their journey northwards next week after registering
stellar gains this week, but may also see some intermediate consolidation. Despite
seesawing between gains and losses during the day, benchmark indices managed a
positive finish for the fourth consecutive session yesterday, ending at a one-month
high. Indices ended the week with over 6% gains.

The positive bias also comes from the fact that foreign institutional investors have
turned net buyers during the week. National Stock Exchange's Nifty 50 ended at
7485.35, up 9.75 points or 0.1% after touching an intraday high of 7505.90 points.
S&P BSE's Sensex closed at 24646.48, up 39.49 points or 0.2%. Next week is a
shorter week, as stock markets will remain shutting on Monday for Mahashivratri.

Data points globally and on the domestic front will lend cues to shares next week.
Investors globally are waiting for the US non-farm payrolls data for February, due
later yesterday, before taking any further bullish bets in emerging markets. The data is
important as it will provide some indication as to whether the US Federal Reserve will
be slow in raising interest rates in future.

On the domestic front, the industrial production and consumer price inflation data will
be in focus. Following the Union Budget for 2016-17 (Apr-Mar), the market has been
hoping for an interest rate cut from the Reserve Bank of India. If the economic data
throws some positive surprise, then the prospects for a rate cut will get stronger.

Stock, Sector Watch

Bank stocks are seen gaining further next week, with the Nifty Bank set to rise by
another 200 points. Yesterday, the Nifty Bank index ended up 1% at 15339.20 points,
while Nifty PSU Bank closed up 3.3% at 2388.75. Sentiment in the sector was
positive on expectation that the government will announce a slew of measures on
Saturday pertaining to recapitalisation, asset quality resolution and also provide
clarity on consolidation in the sector following the two-day Gyan Sangam meet.

Stocks of telecom companies may continue to decline due to ambiguity over the call
drop compensation case, as the Supreme Court has refused to grant any interim relief
to the companies against Delhi High Court's order to make companies compensate
subscribers for call drops from Jan 1