Indian Markets Outlook for the week – 22.Feb.2016 to 26.Feb.2016
Budget will set the trend for equities next week
( www.rupeedesk.in )
Expiry
of the February derivatives series, the Budget session of
Parliament
and the tone of the Railway Budget will set the trend for
equities
next week. The underlying bias will remain positive in the run-up
to
the Union Budget for 2016-17 (Apr-Mar), particularly as market
participants
keenly watch the Budget session, which starts Tuesday, for
the
passage of the Goods and Services Tax Bill.
Apart
from GST, the passage of the Bankruptcy Code and Rail Regulator
Bill
may be a positive surprise for the market. The last few sessions were
complete
washouts and meaningful action in Parliament could be a
welcome
surprise for the markets.
Thursday,
the Railway Budget and the expiry of the February futures and
options
series will be in focus. Expiry of the current derivatives series is
expected
to keep action volatile, particularly on Thursday, as positions
would
be rolled over to the March derivatives series for the Budget.
Even
though the impact of the Railway Budget is seen largely limited to
stocks
of companies linked to railway sector. The Union Budget, to be
detailed
on Feb 29, is expected to focus on fiscal consolidation, spending
on
infrastructure, rural India, and reforms for public sector banks.
For
the week ahead, Nifty 50 is seen rising up to 7350-7400 points,
implying
an upside of 2-3% from current levels. This week, indices have
ended
with over 3% gains each.
Nifty
50 ended at 7210.75, up 19.00 points or 0.3% from the
previous
close, while Sensex ended at 23709.15, up 59.93 points or 0.2%
from
Thursday. The India VIX or volatility index ended down 2.6% at
20.9150.
Short
covering ahead of the Union Budget later in the month helped
indices
recoup intraday losses, to end marginally in the green.
Open
interest in Nifty 50 February fell nearly 5% to 20.55 mln, and the
contract
ended at a premium of 1.7 points to the spot index, as compared
to a discount in the previous session( www.rupeedesk.in )
