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Local share indices are likely to take directions from a host of domestic and overseas events--including developments in the US over the debt ceiling and the balance of payment data for India--in the coming week, but the bias is seen broadly negative. Caution is likely to prevail due to current impasse over the US debt ceiling. The US Congress needs to pass stop-gap funding before Oct 1, and must raise the borrowing limit by Oct 17 to avoid a debt default by the US. US Senate majority leader, Harry Reid, said Thursday that his chamber plans to pass a stop-gap budget bill by Sunday, but House Speaker John Boehner said his Republican party may not support it. Back home, a number of key economic data to be released next week will set direction for the stock markets. On Monday, the Reserve Bank of India will detail the balance of payments data for Apr-Jun. Key data due next week also includes HSBC India manufacturing-purchasing managers index for September on Tuesday and HSBC Services PMI and composite PMI for September on Friday. Next week, Nifty is seen trading in the 5750-5920 points range. Today, the National Stock Exchange's 50-share Nifty ended at 5833.20, down 49.05 points or 0.8%. It hit a high of 5909.20 and a low of 5819.30 during the session. The S&P BSE Sensex ended at 19727.27, down 166.58 points or 0.8%. It moved between 19674.38 and 19981.57. MCX Stock Exchange's SX40 ended at 11740.84, down 38.32 points, after moving between 11665.80 and 11861.57. Most traders are bearish on the market next week as Jul-Sep earnings reporting season nears. They advise using any rise as an opportunity to sell. Expectations related to the earnings season will act as an overhang on the market and sentiment would be negative also because the market has run up significantly in September. Key economic data is unlikely to result in a great up move unless they surprise greatly in the positive. Information technology and pharmaceutical companies' stocks are likely to be positive, while rate-sensitive banks would continue to be weak. Bank Nifty is seen trading in the 9400-10550 range. Today, Bank Nifty ended at 9899.75, down 198.50 points or 2%, Auto companies will be in focus next week ahead of the release of their monthly sales numbers, with most traders expecting weak sales numbers. Stocks of state-owned oil marketing companies are seen rangebound and will mostly take cues from the recommendations of the Kirit Parekh committee on pricing methodology for subsidised fuels. The panel will hold its final meeting on Saturday. The committee is likely to recommend a tweaking of the pricing mechanism for diesel to trade parity, and status quo for kerosene and subsidised liquefied petroleum gas.
Local share indices are likely to take directions from a host of domestic and overseas events--including developments in the US over the debt ceiling and the balance of payment data for India--in the coming week, but the bias is seen broadly negative. Caution is likely to prevail due to current impasse over the US debt ceiling. The US Congress needs to pass stop-gap funding before Oct 1, and must raise the borrowing limit by Oct 17 to avoid a debt default by the US. US Senate majority leader, Harry Reid, said Thursday that his chamber plans to pass a stop-gap budget bill by Sunday, but House Speaker John Boehner said his Republican party may not support it. Back home, a number of key economic data to be released next week will set direction for the stock markets. On Monday, the Reserve Bank of India will detail the balance of payments data for Apr-Jun. Key data due next week also includes HSBC India manufacturing-purchasing managers index for September on Tuesday and HSBC Services PMI and composite PMI for September on Friday. Next week, Nifty is seen trading in the 5750-5920 points range. Today, the National Stock Exchange's 50-share Nifty ended at 5833.20, down 49.05 points or 0.8%. It hit a high of 5909.20 and a low of 5819.30 during the session. The S&P BSE Sensex ended at 19727.27, down 166.58 points or 0.8%. It moved between 19674.38 and 19981.57. MCX Stock Exchange's SX40 ended at 11740.84, down 38.32 points, after moving between 11665.80 and 11861.57. Most traders are bearish on the market next week as Jul-Sep earnings reporting season nears. They advise using any rise as an opportunity to sell. Expectations related to the earnings season will act as an overhang on the market and sentiment would be negative also because the market has run up significantly in September. Key economic data is unlikely to result in a great up move unless they surprise greatly in the positive. Information technology and pharmaceutical companies' stocks are likely to be positive, while rate-sensitive banks would continue to be weak. Bank Nifty is seen trading in the 9400-10550 range. Today, Bank Nifty ended at 9899.75, down 198.50 points or 2%, Auto companies will be in focus next week ahead of the release of their monthly sales numbers, with most traders expecting weak sales numbers. Stocks of state-owned oil marketing companies are seen rangebound and will mostly take cues from the recommendations of the Kirit Parekh committee on pricing methodology for subsidised fuels. The panel will hold its final meeting on Saturday. The committee is likely to recommend a tweaking of the pricing mechanism for diesel to trade parity, and status quo for kerosene and subsidised liquefied petroleum gas.
