Indian Markets Outlook for the week – 09.May.2016 to 13.May.2016
Global markets are likely to dictate
the trend for benchmark share indices next week, with the Jan- Mar earnings of key companies likely to keep
the action stock-specific. The underlying bias for
equities is positive after the
indices declined significantly this week. This week, the index declined
1.5% to 7733.45 points. Yesterday,
the Nifty 50 ended flat in a volatile session, as investors
cautiously awaited data on US
non-farm payrolls for April. The S&P 500 futures extended losses and
were down 0.5%, against 0.3% earlier,
as lower additions of non-farm jobs stoked fear that the US
economy may not be in the pink of
health. The Dow Jones Industrial Average futures were also down 0.5%.
In April, 160,000 non-farm jobs were
added, lower than the 215,000 added in March. At 5.0%, the
unemployment rate was unchanged from
the previous month. In India, market participants remain
positive about the economy, even
while keeping an eye on weak global markets. The recent correction in equities
has led investors to reallocate their portfolios, and they are going long on
the
banking sector. Market participants
are also positive about the automobile sector, especially after
most companies reported robust sales
numbers for April.
EARNINGS
WATCH
Corporate earnings for Jan-Mar will
be a crucial factor for markets next week, with five Nifty 50
constituents--Hindustan Unilever, Zee
Entertainment Enterprises, Asian Paints, Kotak Mahindra Bank
and Dr Reddy's
Laboratories--reporting their earnings. Grasim Industries will report its
earnings on
Saturday. Index heavyweight Hindustan
Unilever is expected to report a 1% fall in quarterly net
profit at 10.1 bln rupees on Monday.
Yesterday, the stock ended up 0.4% at 853.40 rupees. Stocks
of Dr Reddy's Laboratories, which
will report its earnings on Thursday, are seen trading with a negative bias.
Yesterday, the stock ended down 2.2% at 2,866.30 rupees. Other companies
reporting their Jan-Mar earnings next week are SRF, Apollo Tyres, Chambal
Fertilisers & Chemicals, Havells India, Glenmark Pharmaceuticals, and
Nestle India.
