Indian Market Outlook for the week - 23 to 27.01.2017
Indian Market Outlook for the week - 23 to 27.01.2017
( www.rupeedesk.in )
Domestic equities are likely to witness volatility next week, as expectations from the Union Budget for 2017-18 (Apr-Mar), US President-elect Donald Trump's inauguration speech, Oct-Dec corporate earnings, and expiry of the January derivatives contracts will keep the market on its toes. A pre-budget rally could lead to an upside of 100-150 points in the Nifty 50, but that will happen only later in the week. Traders are likely to avoid taking too many fresh positions as trading next week will be truncated and due to uncertainty regarding the Union Budget. Markets will be shut on Jan 26 for Republic Day, while the Budget will be presented on Feb 1. Volatility on the indices is also seen augmented by the expiry of the January derivatives contracts, due on Wednesday. While there is no major downside seen, profit booking at higher levels will keep a cap on gains. This will continue to be a buy-on-dips market for a while. If Trump gives any further statements signalling a more inward-looking US economy, emerging markets such as India might react negatively. Stocks of information technology companies and pharmaceutical companies will especially be in focus after Trump's speech, as his recent comments have signalled unfavourable policies regarding these sectors. Oct-Dec earnings of several index majors, due next week, will also keep market participants cautious. On Saturday, Ultratech Cement will detail its earnings, while Bharti Infratel, Asian Paints, and Hindustan Unilever will do so on Monday. December quarter results from Bharti Airtel, HCL Technologies, Zee Entertainment Enterprises, Maruti Suzuki, Wipro, and ITC are also due next week. December quarter earnings are likely to put the focus on fast moving consumer companies as performance of sector heavy weights--HUL and ITC--will be watched. FMCG stocks are likely to hold on to their current levels and they would not react significantly unless the results from ITC and HUL are way off expectations. While a decline in margin and sales volume are expected across the sector, most market participants believe these negatives have been factored in the stock prices. We expect the FMCG-pack to gain as we believe that the sector could throw positive surprises in the earnings. Yesterday, the 51- stock Nifty 50 index ended down 85.75 points, or 1.0% at 8349.35 points, while the BSE Sensex closed at 27034.5 points, down 274.1 points or 1.0%. On a week-to-week basis, the Nifty 50 ended down 0.6%, snapping a run of three weeks of gains.
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Indian Market Outlook for the week - 23 to 27.01.2017
( www.rupeedesk.in )
Domestic equities are likely to witness volatility next week, as expectations from the Union Budget for 2017-18 (Apr-Mar), US President-elect Donald Trump's inauguration speech, Oct-Dec corporate earnings, and expiry of the January derivatives contracts will keep the market on its toes. A pre-budget rally could lead to an upside of 100-150 points in the Nifty 50, but that will happen only later in the week. Traders are likely to avoid taking too many fresh positions as trading next week will be truncated and due to uncertainty regarding the Union Budget. Markets will be shut on Jan 26 for Republic Day, while the Budget will be presented on Feb 1. Volatility on the indices is also seen augmented by the expiry of the January derivatives contracts, due on Wednesday. While there is no major downside seen, profit booking at higher levels will keep a cap on gains. This will continue to be a buy-on-dips market for a while. If Trump gives any further statements signalling a more inward-looking US economy, emerging markets such as India might react negatively. Stocks of information technology companies and pharmaceutical companies will especially be in focus after Trump's speech, as his recent comments have signalled unfavourable policies regarding these sectors. Oct-Dec earnings of several index majors, due next week, will also keep market participants cautious. On Saturday, Ultratech Cement will detail its earnings, while Bharti Infratel, Asian Paints, and Hindustan Unilever will do so on Monday. December quarter results from Bharti Airtel, HCL Technologies, Zee Entertainment Enterprises, Maruti Suzuki, Wipro, and ITC are also due next week. December quarter earnings are likely to put the focus on fast moving consumer companies as performance of sector heavy weights--HUL and ITC--will be watched. FMCG stocks are likely to hold on to their current levels and they would not react significantly unless the results from ITC and HUL are way off expectations. While a decline in margin and sales volume are expected across the sector, most market participants believe these negatives have been factored in the stock prices. We expect the FMCG-pack to gain as we believe that the sector could throw positive surprises in the earnings. Yesterday, the 51- stock Nifty 50 index ended down 85.75 points, or 1.0% at 8349.35 points, while the BSE Sensex closed at 27034.5 points, down 274.1 points or 1.0%. On a week-to-week basis, the Nifty 50 ended down 0.6%, snapping a run of three weeks of gains.
