Indian Markets Outlook for the week – 08.09.2014 to 12.09.2014
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
The bias for equities continues
to remain positive for the week ahead, as market
participants, particularly
foreign institutional investors, continue to bet on the Narendra
Modi government. However, this
does not rule out consolidation, as investors may
continue booking partial profits
after the recent rally. The benchmark indices ended in the
red for the second consecutive
session as investors continued to take partial profits.
Global markets will continue to
be watched. Later, US non-farm payroll data for August
will be detailed. The global
market trend, depending on the data, is likely to be an
indication for the start of
Monday's session. Also, market will keep an eye for further
developments pertaining to Russia
and Ukraine.
Back home, on Tuesday, the
Supreme Court will hear the coal block allocation case. On
Monday, the apex court had began
the hearing on the fate of coal blocks awarded since
1993 and observed that
non-operational mines should be cancelled.
The hearing will keep shares of
metal and power companies in focus, particularly Jindal
Steel and Power, Hindalco
Industries, and Sesa Sterlite. Towards the fag end of the week,
investor attention will shift to
Indian economic data. On Friday, the Central Statistics
Office will detail the Index of
Industrial Production data for July, and the Consumer Price
Index based inflation data for
August. Both of these data points, to be detailed post
market hours, are pivotal as they
will give an insight about the likely action on interest
rates. The Reserve Bank of India
is scheduled to detail its fourth bi-monthly monetary
policy review on Sep 30.
Shares in the mid and small-cap
space are likely to attract further buying, according to
market players. Axis Capital is
positive on Alstom T&D, Britannia Industries, CMC, DB
Corp, Finolex Industries, Gateway
Distriparks, Info Edge, Shoppers Stop and Tube
Investments of India.
Market participants are mixed on
real estate major DLF, which has seen sharp movement
in the past two sessions. Some
advise buying the stock at current levels, while others expect to see correction.
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )