www.rupeedesk.in
Key share indices may raise further next week, after the National Stock Exchange's 50-share Nifty ended very close to its key resistance level of 6100 but breached that level intraday. Investor sentiment will be cautious ahead of India's April headline inflation data. Inflation based on the Wholesale Price Index is likely to moderate to an over three-year low of 5.4% in April. CPI inflation will be detailed on Monday and WPI inflation on Tuesday. Overseas markets and fund flows from foreign institutional investors will remain key indicators for the market. With Sensex valuations above the 15x mark based on FY14 consensus estimates, markets will look forward to domestic factors like initiation of further fiscal reforms, interest rate cuts, monsoons and the remaining quarterly results, to move up from the current levels on a sustainable basis.
Market participants view 6140-6150 as a key resistance for the Nifty, and peg support near 6050. On Saturday, stocks of Cummins India are set to rise as, post market hours yesterday; it posted a higher-than-expected Jan-Mar net profit of 1.88 bln rupees. Essar Oil also may slip, as its Jan-Mar net profit of 2.00 bln rupees. Reliance Communications will also take cues from its Jan-Mar result. The company reported a consolidated net profit of 3.03 bln rupees compared with market estimates of 1.04 bln rupees. This week, Bank of Baroda, Bank of India, Eicher Motors, Nestle India, Dr Reddy's Laboratories, HT Media, Reliance Infrastructure, Reliance Power, Bajaj Auto, and ITC are some of the major companies that will announce their results.
