Indian Market Outlook for the week – 22 to 26.05.2017
Indian Market Outlook for the week – 15 to 19.05.2017
The benchmark indices are likely to trade in a narrow range next week, with global markets and
quarterly corporate results likely to lend Direction. Also, investors would study the impact of the
goods and services tax and buy stocks in segments for which rates are largely favourable. We feel
the stock markets will be steady ahead of the expiry of the May futures and options series on
Thursday, and investors won't be building fresh aggressive positions. Next week, the Nifty 50 is seen
between its crucial support levels of 9370 and 9500.
The initial jump in the S&P BSE Sensex today to a lifetime high was due to a rise in the fast moving
consumer goods sector on broadly lower rates in the new tax regime. These stocks closed off the
day's highs, an indication that investors would not aggressively buy at higher rates. The S&P BSE
Sensex ended up 30.13 points, or 0.1% higher at 30464.92 points today, after having hit a lifetime
high of 30712.35 points.
The Nifty 50 ended down 1.55 points at 9427.90 points, while the Nifty FMCG hit a lifetime high of
24922.50 points and ended up over 2% at 24352.90 points, following the announcement of the
rates under the tax regime. The new tax rates under the goods and services tax for most of the fast
moving consumer goods are near their existing indirect tax rates. However, for toothpaste, hair oil
and soaps, the tax will come down from the current 23% to 18%.
With sector leaders like Hindustan Unilever and ITC moving to lifetime high levels, the brokerage
now expects Britannia Industries to move higher. Stocks of cigarette major ITC closed up 3% at
286.20 rupees, while Hindustan Unilever ended up 1.8% at 1,008 rupees, and Britannia Industries
closed up 0.8% at 3,582.70 rupees.
Next week, investors are likely to focus on shares in the automobile, telecom, information
technology, metals, textiles, and hotels segments, following the announcement of the goods and
services tax rates. Stocks of healthcare and education may attract some buying as they are
exempt from the tax regime.
Next week, Adani Ports and Special Economic Zone, Cipla, GAIL India, ITC, Lupin, Sun
Pharmaceutical, Tata Motors, Bosch, Indian Oil Corp and Tech Mahindra are likely to be in focus as
they are the Nifty 50 companies that will announce their Jan-Mar earnings.
Source : Cogencis Information Services Ltd.
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Indian Market Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
Source : Cogencis Information Services Ltd.
