Indian Markets Outlook for the week – 31.Aug.2015 to
04.Sep.2015
(Consolidate next week; Apr-Jun GDP eyed)
Benchmark
indices are likely to consolidate next week as sentiment remains wobbly
following the recent sell-off in global markets, triggered by concerns over the
health of the Chinese economy. The vulnerability in the markets is there and is
expected to continue for more time. India's gross domestic product growth for
Apr-Jun, which will be released by the Central Statistics Office on Monday,
will be the immediate trigger for the market.
India's
GDP growth is likely to have marginally moderated to 7.4% in Apr-Jun from 7.5%
a quarter ago, primarily pulled down by the services sector. The economy had grown
6.7% in the first quarter of last year.
Also,
market participants will be hoping for any positive news on the sovereign
rating front.
Reports
that the Central Board of Direct Taxes will issue a circular early next week to
exempt
foreign
institutional investors from paying minimum alternate tax prior to April 2015
will also
influence
trade on Monday.
During
the next week, any news of reconvening of the monsoon session of Parliament
will be
closely
tracked. The progress of the monsoon in the country will also be watched. At
the beginning of this week, benchmark indices suffered their biggest intraday
drop in about seven years amid a global market rout, due to China-led global
economy slowdown concerns.
However,
some calm returned to global markets in the last two days, after a New York
Federal
Reserve official said that a September rate hike in the US was unlikely.
A strong US GDP growth data for Apr-Jun was also among the factors that aided
markets. China also took some easing measures during the week, including an
interest rate cut and liquidity infusions( www.rupeedesk.in )
