Indian Markets Outlook for the week – 7.Sep.2015 to
11.Sep.2015
( www.rupeedesk.in )
The
equity market will continue to face the risk of a further slump next week as
investors around the world grapple with fears of yet another slowdown in the
global economy. Yesterday, the National Stock Exchange's Nifty ended at a
13-month low of 7665.05, down 2.2% from Thursday, and posting a fall of 4.3%
for the week.
After
fall, there will be caution till the US Federal Reserve's next monetary policy
meeting on Sep 16-17. The S&P BSE Sensex ended at 25201.90 points, down
2.2% from Thursday.
Global
markets will track the trend in US equities, which are likely to fall last day.
Dow futures fell over 180 points after the release of the US non-farm payrolls
data. Non-farm payrolls rose 173,000 in August. Also, unemployment rate fell to
5.1%, the lowest rate since April, 2008.
According
to the minutes of the US Federal Open Market Committee's July meeting, some
policymakers
showed concerns over lagging inflation and awaited further progress in the
labour
market
before tightening monetary policy. There is an expectation that the data will
give an indication of the rate hike in US...
Domestically,
there are no triggers (for equities). There is talk of having a Parliamentary
session for GST (Goods and Service Tax Bill), but it is not happening.
The
Nifty is seen finding immediate support at 7500 points level. On the other
hand, any rebound in the Nifty could lead the index to face resistance at 8000
points. Among sectors, banking and other rate-sensitive stocks are likely to be
weak, with market participants advising investors to avoid them until the
market stabilises. Investors advised to buy pharmaceutical and information
technology stocks among defensives. The weak rupee against the dollar is a key factor affecting information
technology stocks.
( www.rupeedesk.in )
