Indian Markets Outlook for the week – 24.Aug.2015 to
28.Aug.2015
IOC
eyed Monday on government divest via OFS
( www.rupeedesk.in )
Concerns
over slowdown in the global economy will continue to weigh on market sentiment
in the coming week, with benchmark indices likely to fall further. Amid the
persisting weak sentiment, one stock that will be in the limelight on Monday is
Indian Oil Corp, in which the government will divest 10% stake through an offer
for sale on Monday. Yesterday, stocks of Indian Oil ended down 0.7% at 394.85
rupees. The uncertainty in the global markets seems to have offset the news of
government considering giving relief to foreign institutional investors on the
minimum alternate tax issue.
The news
is unlikely to soothe market sentiment in a big way. It will provide initial
support but if the macro overhang continues, not too much positive will come out
of this. Moreover, expiry of the August futures contracts on Thursday will keep
trade volatile during the week. We expect the August futures contract of the
National Stock Exchange's Nifty to expire around 8300 points. The likely
weakness in the rupee will also weigh.
Yesterday,
the rupee ended at 65.8250 per dollar, its lowest closing since Sep 5, 2013.
Worries that a slowdown in the Chinese economy will translate into slower
global growth saw the Nifty and the S&P BSE Sensex falling 2.6% and 2.5%,
respectively, this week.
The
benchmark indices have effectively erased all the gains made this year. Besides
global concerns, persisting worries over lack of progress on key legislations
and pick-up in earnings growth, and uncertainty over the US Federal Reserve's
rate hike move have led to the gradual weakening in domestic equities. Year to
date, Nifty is up 0.2% and Sensex is down 0.5%.
