Indian Markets Outlook for the week – 18.05.2015 to 22.05.2015
(Range-bound
next week; Jan-Mar results in focus)
( www.rupeedesk.in )
Share
indices are seen range-bound next week with Jan-Mar corporate earnings and
developments in overseas markets expected to give direction to equities. The
market is in a time-bound correction and it will be range-bound next week.
Volatility is likely to persist, with traders advised to maintain caution. But
this is seen as a good time for long-term investors to buy stocks.
Foreign
institutional investors were net sellers in the cash market again, selling
stocks worth 383.1 mln rupees yesterday. The selling is seen putting pressure
on the markets by participants as they change their exposure in global markets.
The movement in the rupee is also seen giving direction to equities. The slight
widening of trade deficit will also be a cause of concern for the market. The deficit
widened in April to $10.99 bln against $10.09 bln a year ago. Monsoon is also
seen as a trigger for the market over the rest of the month.
Yesterday,
the Nifty ended at 8262.35 points, up 38.15 points or 0.5%, while the S&P
BSE Sensex ended up 117.94 points or 0.4% at 27324 points. Corporate earnings
for the quarter ending Jan-Mar are key triggers for their respective sectors and
broader equities.
Among
Nifty companies, State Bank of India, Asian Paints, Tata Power Co, Bajaj Auto
and Zee Entertainment Enterprises will be releasing their Jan-Mar earnings next
week. State Bank of India is expected to report stable earnings for the
quarter, especially after most public sector banks reported good earnings. The
bank is reporting its earnings on next Friday. Asian Paints, which is reporting
its Jan-Mar results on Monday. The company is likely to post a 33% on-year
growth in consolidated net profit to 3.81 bln rupees in Jan-Mar, owing
improving margins due to lower input costs.
Other
companies releasing their Jan-Mar earnings next week are Bharat Forge, DLF,
Shipping Corp of India, Britannia Industries, Voltas, GlaxoSmithKline Pharmaceuticals,
among others.
( www.rupeedesk.in )
