Indian Markets Outlook for the week – 03.11.2014 to 07.11.2014
The bull run in equities is set
to continue next week as well on the back of buoyant foreign fund
flows after indices hit record
highs yesterday. Yesterday, equities rose nearly 2% pushing the
National Stock Exchange's Nifty
above the 8300-mark and S&P BSE's Sensex above 27800
points riding on the optimism
over a spate of government reforms and robust corporate earnings.
Sensex hit a lifetime high of
27894.32 and ended at a record closing high of 27865.83, up 519.50
points or 1.9%. Nifty touched a
lifetime high of 8330.75 points and ended at a record high of
8322.20, up 153 points or 1.9%.
The dash towards new all time
highs after one month corrective phase signals resumption of
upward momentum after a brief
pause. Going forward, we expect benchmarks (Sensex, Nifty) to
remain in a rising trajectory and
head towards 28300/8450 levels over the medium-term.
While the underlying sentiment is
bullish, action in the truncated week is expected to
increasingly remain company
specific as several companies are scheduled to report their
earnings.
The stock market will be closed
on Tuesday for Moharram and Thursday for Gurunanak Jayanti.
Jindal Steel & Power, Bank of
Baroda, and Larsen & Toubro are among the Nifty majors
reporting earnings next week.
Bank of India, Dabur India, Aban Offshore, Thermax, Torrent
Power, Bata India, Colgate
Palmolive India, IRB Infrastructure Developers, Tata Global
Beverages, Ashok Leyland,
Aurobindo Pharma, Cadila Healthcare, Cummins India, Canara
Bank and Indian Bank are some of
the other major companies reporting earnings next week.
Besides earnings, the Street's
focus will also be on the monthly sales numbers of automobile
companies that will be released
Saturday. Investors are bracing for strong October sales numbers
from the companies which
witnessed good demand in the festival season. Maruti Suzuki's sales
in the festival season witnessed
a 10% on-year growth.
Global developments will also be
watched by the investors. China and US manufacturing data is
due next week. Investors are
expect positive on rate sensitive sectors, particularly banks, and
expect it to gain further. Major
indicators are still giving positive signals and further possibilities of rise can be seen in coming
sessions.
