Indian Markets Outlook for the week – 21.Mar.2016 to 25.Mar.2016
Seen firm in truncated week; Nifty 50 eyes 7700
( www.rupeedesk.in )
Share
indices are likely to continue the up move in a truncated upcoming week, and
market
participants
expect National Stock Exchange's Nifty 50 to test 7700 points after it topped a
two-month high yesterday.
Next
week, Nifty 50 is seen facing resistance at 7600 points, and a breach of this
level would begin the start of a new bull market. Yesterday, Nifty 50 ended at
7604.35, up 91.80 points or 1.2% from the previous close. This week, the index
has ended 1.2% higher. S&P BSE's Sensex gained 275.37 points or 1.1% to end
at 24952.74.
Foreign
institutional investors yesterday net bought Indian equities worth 17.13 bln
rupees. The
continuous
inflow of foreign funds and pick up in the Chinese market has created a
positive sentiment in the market. FIIs have been net buyers of Indian shares
for the last three consecutive sessions. Markets will remain shutting for Holi
on Thursday, and for Good Friday.
IN-FOCUS STOCKS
The
stocks in Pharma (pharmaceutical) sector are witnessing continuous fear from
the US FDA (US
Food
and Drug Administration) division for violation in the best manufacturing
practices. This has
resulted
into reasonable valuations in the entire sector throwing value-based buying
opportunities for
the
long term investors. Yesterday, the stock hit a 52-week low to end at 1,554.40
rupees. Banks are
likely
to gain next week on expectation of a rate cut by the Reserve Bank of India
before its next
monetary
policy meet in April.
Cement
stocks are expected to gain further, due to positive sentiment for the sector,
as prices have
shown
an uptick after a few subdued quarters. Analysts are also upbeat on the
sector's performance, as they expect earnings to recover over 2016-18 (Apr-Mar)
on volume growth and price stability. Stocks of Welspun India will be in focus,
as the Maharashtra government levied value added tax of 5.5% on terry towels in
its Budget, yesterday. Marico's shares will also be eyed as the state
government increased value added tax on up to 500 ml coconut hair oil pack to
12.5%.
( www.rupeedesk.in )
