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Benchmark share indices are likely to continue to trade with a positive bias next week. On Monday, equities may gain as data released after market hours yesterday showed India's gross domestic product grew 4.8% in Jul-Sep, up from a four- year low of 4.4% in the previous quarter, and 4.7% estimated. The numbers are definitely encouraging and better than our estimate of 4.5% and the consensus of 4.6% due to a surprise growth in the industrial performance. Industrial performance grew 2.4% in Jul-Sep, up from 1.3% a year ago and 1.3% estimated by the economist. Agricultural and services grew largely in line with expectations at 4.6% and 5.9% respectively. Post the GDP data, there is definitely some upside to our 2013-14 (Apr-Mar) GDP growth forecast of 4.5%. A GDP figure that beats expectations should lead to a surge in the equity market and rupee appreciation. It would also give the RBI some leeway for further repo rate increases in the future, if required.
The market will open with a gap up on Monday, but some profit booking may kick in at 6240-levels on the Nifty as better economic data was largely been priced in, evident from the gains yesterday. On the political front, the market will keep an eye on assembly elections in Rajasthan and Delhi, being held on Sunday and Wednesday respectively. The market will also focus on the winter session of the Parliament that starts on Thursday. We expect the National Stock Exchange's 50-share Nifty to move between 6000-6300 points next week. If the index breaches its crucial resistance of 6300 points, it is likely to scale new highs.
Yesterday, the Nifty closed at 6176.10, up 84.25 points or 1.4%. The S&P BSE's 30-share Sensex ended at 20791.93, up 257.02 points or 1.2%. MCX Stock Exchange's SX40 closed at 12344.49, up 159.26 points or 1.3%. If Nifty fails to cross 6220 initially, it can remain rangebound for the remaining week. Sector-wise, we expect banks and capital goods to continue their positive run, while metals may succumb to profit sales. Stocks in the financial space are likely to trade with a positive momentum taking cues from better-than-expected GDP data.
The Bank Nifty is expected to trade in the 10900-11250 bands next week. If the index tops its immediate resistance of 11250, it can test 11500 points. Yesterday, the index ended up 247.20 points or 2.3% at 11153.95 points. On the downside, We expects automobile stocks to remain under pressure as the sales figures for November are unlikely to be exciting on an yearly basis as the despatches for the festival season have already been accounted for in October, unlike last year.
Benchmark share indices are likely to continue to trade with a positive bias next week. On Monday, equities may gain as data released after market hours yesterday showed India's gross domestic product grew 4.8% in Jul-Sep, up from a four- year low of 4.4% in the previous quarter, and 4.7% estimated. The numbers are definitely encouraging and better than our estimate of 4.5% and the consensus of 4.6% due to a surprise growth in the industrial performance. Industrial performance grew 2.4% in Jul-Sep, up from 1.3% a year ago and 1.3% estimated by the economist. Agricultural and services grew largely in line with expectations at 4.6% and 5.9% respectively. Post the GDP data, there is definitely some upside to our 2013-14 (Apr-Mar) GDP growth forecast of 4.5%. A GDP figure that beats expectations should lead to a surge in the equity market and rupee appreciation. It would also give the RBI some leeway for further repo rate increases in the future, if required.
The market will open with a gap up on Monday, but some profit booking may kick in at 6240-levels on the Nifty as better economic data was largely been priced in, evident from the gains yesterday. On the political front, the market will keep an eye on assembly elections in Rajasthan and Delhi, being held on Sunday and Wednesday respectively. The market will also focus on the winter session of the Parliament that starts on Thursday. We expect the National Stock Exchange's 50-share Nifty to move between 6000-6300 points next week. If the index breaches its crucial resistance of 6300 points, it is likely to scale new highs.
Yesterday, the Nifty closed at 6176.10, up 84.25 points or 1.4%. The S&P BSE's 30-share Sensex ended at 20791.93, up 257.02 points or 1.2%. MCX Stock Exchange's SX40 closed at 12344.49, up 159.26 points or 1.3%. If Nifty fails to cross 6220 initially, it can remain rangebound for the remaining week. Sector-wise, we expect banks and capital goods to continue their positive run, while metals may succumb to profit sales. Stocks in the financial space are likely to trade with a positive momentum taking cues from better-than-expected GDP data.
The Bank Nifty is expected to trade in the 10900-11250 bands next week. If the index tops its immediate resistance of 11250, it can test 11500 points. Yesterday, the index ended up 247.20 points or 2.3% at 11153.95 points. On the downside, We expects automobile stocks to remain under pressure as the sales figures for November are unlikely to be exciting on an yearly basis as the despatches for the festival season have already been accounted for in October, unlike last year.
