Indian Markets Outlook for the week – 21 to 25.07.2014

Indian Markets Outlook for the week – 21.07.2014 to 25.07.2014

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

Corporate earnings and trend in the overseas markets will lend cues to the local equities

next week, with the underlying sentiment being positive after they ended at an over

one-week high yesterday. Market participants expect the National Stock Exchange's Nifty

to move in the 7550-7750 range. Indices may touch lifetime highs next week, but a few

others said if Ukraine-Russia and Israel-Palestine tensions escalate, it may have a

negative bearing on the domestic share indices.

If geopolitical tensions continue, and then the Nifty may not be able to cross 7800. The

Nifty and the S&P BSE Sensex had touched record highs of 7808.85 and 26190.44,

respectively, on Jul 8. Yesterday, the 50-share Nifty ended at 7663.90, up 23.45 points

or 0.3% from close Thursday. The index tested a low of 7595.50 and a high of 7685.00

during the day. The 30-share Sensex closed at 25641.56, up 80.40 points or 0.3%. The

index moved between 25441.24 and 25713.40 during the day. 

Nifty constituents reporting Apr-Jun earnings next week are Housing Development Finance Corp, HDFC

Bank, Asian Paints, Axis Bank, ACC, Ambuja Cements, Wipro and Punjab National Bank.

Reliance Industries and UltraTech Cement, which will report Apr-Jun earnings on today,

will react to the same in Monday's session. The refining behemoth is likely to report

muted set of numbers for the quarter as moderation in refining and petrochemicals

margins will weigh on its bottomline. Lower gas output will also continue to be a drag.

We expect RIL to report a rise of just 1% year-on-year in net profit for Apr-Jun at 54.03

bln rupees while top line is expected to increase 12% to 980.63 bln rupees. Gross

refining margin is seen in the range of $8.5-$8.9 a barrel. If Reliance (Industries) gives

good numbers, then on Monday, market will see a gap-up opening.

Cement sector giant UltraTech Cement is also likely to report a muted set of numbers.

We expect UltraTech to post a net profit growth of 1% year-on-year to 6.8 bln rupees

and net sales of 55.80 bln rupees, up 12% on-year. Among sectors, market participants

are positive on infrastructure, bank and real estate stocks. In the banking space, are

positive on large-cap names like ICICI Bank, State Bank of India, Axis Bank and Punjab National Bank.

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)