Indian Markets Outlook for the week – 15.12.2014 to 19.12.2014
( www.rupeedesk.in )
Benchmark stock indices are expected to see further
downside next week as industrial production data for October, released by Central
Statistics Office after market hours lastday, disappointed market participants.
According to the data, industrial production for October
contracted by 4.2% as against a contraction of 1.2% a year ago. Markets had expected
industrial growth at 2.5% in October. However, the consumer price indexed inflation for November
was in line with Street's estimate, and stood at 4.38% as against 5.52% a year ago.
Investors may take further cues from weak global equities.
Trade in global equities is expected to be cautious ahead of the two-day US Federal Reserve
Open Committee meeting that would begin on Tuesday. Trade is also expected to be weak as
foreign institutional investor activity may be subdued with the onset of the holiday season.
The Nifty is expected to trade in the range of 8170-8390
points next week. Today, the index ended at 8224.10, down 68.80 points or 0.8% from close on
Thursday, and the S&P BSE Sensex was at 27350.68, down 251.33 points or 0.9%.
Various fundamentals will keep Nifty under pressure. Major
technical indicators are indicating further downfall in coming week. In the oil and gas space,
with the crude oil price slipping below the crucial psychological level of $60 per barrel,
stocks of upstream oil companies and oil marketing companies may continue to remain in focus.
West Texas Intermediate crude fell 2.6% to $59.36, its
lowest level since July 2009. Brent crude oil dropped 1.4% to $63.34. Stocks of most upstream oil
companies such as Cairn India, Oil and Natural Gas Corp and Oil India are seen extending losses,
in case crude oil prices weaken further.
With the rupee under pressure, defensive sectors such as
pharmaceutical companies, information technology and
fast moving consumer goods companies will remain in focus next week. The mid-cap and the small-cap sector are seen
under-performing the broad market next week.
( www.rupeedesk.in )
( www.rupeedesk.in )
