Indian Markets Outlook for the week – 15.Feb.2016 to 19.Feb.2016
(Bias negative next week; global markets eyed)
( www.rupeedesk.in )
After
posting their second consecutive weekly loss, bias for domestic
equities
in the coming week is seen negative as continuing fears of
a
global slowdown and concerns over bad loans of banks are likely to
weigh.
As
the corporate earnings season is nearly over, investor attention will
be
more on global markets, particularly China, which will re-open on
Monday
after remaining shut this week for Lunar New Year holidays.
Sentiment
will be subdued also because data released after market hours
yesterday
showed that India's headline inflation rate based on the
Consumer
Price Index (Combined) rose to a 17-month high of 5.69% in
January
from 5.61% in December, and came in higher-than-expected
5.4%.
Also, industrial output in December contracted 1.3% against
expectation
of 1.3% growth.
However,
some in the market are hopeful of a bounce back during the
week
as domestic indices have fallen sharply over the last few days,
breaking
multiple key support levels. The broader trend though, remains
weak.
According to our analysis the volatility is here to stay as
commodity
prices are yet to stabilise. We are yet to see stability around
commodities,
which have been a core concern it is too early to say
commodities
have stabilised, which implies that volatility is here to say.
While
trend in the week would be dependent on global markets, attention
will
increasingly shift to the Union Budget, due later this month, and
expectations
around it will also influence trend in domestic equities. In
specific
sectors, banks are likely to trade with a weak bias due to
continued asset quality concerns.( www.rupeedesk.in )
