Indian markets Outlook for the week - 05 to 09.May.2014
(Sectorwise Weekly Outlook, View on www.rupeedesk.in )
Benchmark
indices are seen trading in a range next week but volatility is set to spike as well
as market participants prepare themselves for May 16, when results of the
general elections
will be announced. The Street will also take cues from overseas markets and Jan-Mar
earnings announcements from companies.
Amid
the expected increase in volatility, market players suggest investing in stocks depending
on respective risk profiles. Many participants advise investing in defensive shares
as volatility is expected to increase in the market.
Others
advise buying capital goods stocks as the sector is seen as one of the key beneficiaries
if Bharatiya Janata Party wins the general elections with a strong majority. Infrastructure,
real estate and banking sectors are also seen benefiting from a stable government
at the Centre after the elections. Over the medium-to-long term, the formation
of a stable government will likely put the infrastructure and industrial sector back
on track as well as ease concerns on fiscal deficit thus, providing an upward
bias to the
current valuations.
On
the political front, phase eight of Lok Sabha polls will be held on Wednesday, covering
64 seats in seven states. Polling for 175 Assembly seats in Andhra Pradesh, two in
Uttar Pradesh and one each in Bihar and West Bengal will also be held. Market participants
see National Stock Exchange's 50-share Nifty trading in the 6600-6800-point range
in the coming week.
The
50-stock Nifty ended flat at 6694.80, down 1.60 points from close Wednesday,
after moving
between 6689.50 and 6737.65 intraday. The S&P BSE's 30-share Sensex ended at
22403.89, down 13.91 points or 0.1%. Intraday, it touched a low of 22386.95 and
a high
of 22575.62 points.
Companies
detailing earnings for the quarter ended March next week include Canara Bank,
Housing Development Finance Corp, Titan Co, Allahabad Bank, United Bank of India,
GlaxoSmithKline Consumer Healthcare, Piramal Enterprises, Corporation Bank, Torrent
Pharmaceuticals and Magma FinCorp.
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