Indian Markets Outlook for the week - 04 to 08.05.2015
Stock
indices are expected to tread lower in the coming week amid lack of any
positive fundamental triggers, and lack of clarity on whether foreign
institutional investors will have to pay minimum alternate tax for earlier
transactions. Finance Minister Arun Jaitley, in his reply to a debate on the
Finance Bill 2015, which was passed by the Lok Sabha today, said FIIs will not
have to pay MAT from the current financial year and that its levy for the previous
years would depend on a Supreme Court order.
Retrospective
taxation fears and weak corporate earnings will continue to weigh heavily on
the market. Introduction of key policy bills such as the one on Goods and
Services Tax will be keenly watched next week. Indices have lost 1.5% each this
week, and market participants believe further fall is on the cards. FIIs have
been continuously on the short side. Also quarterly results are weak and
monsoon is also not expected to be good. So fundamentally there are no
positives. Market participants expect the National Stock Exchange to find
initial support at 8100 points, breaching which sub-8000 levels on the index
are likely to be seen.
Some
market participants said a bounce back could be seen next week but the overall
weak
sentiment
would restrict any gains. Others advised utilising any bounce back to sell
stocks.
Last
trading day, the National Stock Exchange's Nifty ended at 8181.50, down 58.25
points or 0.7% from Wednesday's close, after testing a low of 8144.75 and a
high of 8229.40 intraday. The S&P BSE Sensex closed at 27011.31, down
214.62 points or 0.8%. During the day, the Sensex touched a low of 26897.54 and
a high of 27242.05.
Sector
wise, market participants expect private banks and real estate stocks to extend
gains next week. Market participants are bullish on private banks as some of
them reported better-thanexpected Jan-Mar earnings this week.
Real
estate stocks may extend gains next week as the government today said MAT will
be exempted for gains from sale of real estate investment trust units. Tyre
makers are set to gain on Monday as the finance minister said last day that the
government would soon hike import duty on rubber to 25% from 20% at present.
On
the earnings front, Kotak Mahindra Bank, Hero MotoCorp, Punjab National Bank,
Grasim Industries and Hindustan Unilever will detail results for the quarter
ended March next week. Others reporting Jan-Mar results next week include Adani
Ports and Special Economic Zone, IDBI Bank, SKS Microfinance, Dabur India,
South Indian Bank, Allahabad Bank, Eicher Motors and Titan Co.
