Indian Market Outlook for the week – 17 to 21.07.2017
Indian Market Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Equities are seen positive in the week ahead as the lower wholesale price inflation data for June
further strengthened the case for a rate cut from the Reserve Bank of India. However, investors'
focus will largely be on quarterly earnings that are expected to be released by several companies
next week. As a result, some amount of volatility is expected in equities.
Investors will closely watch the numbers, particularly those in the consumer-centric sectors in
order to gauge the impact of the goods and services tax, as many of them undertook destocking
ahead of implementation of the new tax regime from Jul 1.
Indices yesterday snapped their four-day gaining streak, weighed by weaker-than-expected
earnings of index heavyweight Tata Consultancy Services, despite a positive surprise from Infosys.
However losses in the indices were limited by gains in shares of pharmaceutical companies and
banks. However, once earnings start flowing in next week, market action is likely to be much more
stock specific.
Yesterday, the Nifty 50 index ended at 9886.35, down 5.35 points from the previous close. While,
the 31-stock S&P BSE Sensex ended at 32020.75 points, down 16.63 points from its previous close.
The Nifty 50 is seen moving in the range of 9700-9950 points next week. Some market participants
do see the possibility of the index testing 10000 points next week.
Besides corporate earnings, global markets will also be lending direction to domestic markets. The
US consumer inflation data is announced yesterday. The data on inflation is important as it will give
clues on the future move on interest rates by the US Federal Reserve. Apart from the release of
economic data, second quarterly results of leading US-banks JP Morgan Chase & Co, Wells Fargo &
Co, and Citigroup Inc will also be of interest to investors.
Back home, market participants will also keep a watch on the commencement of the voting of the
presidential elections on Monday. The main contenders in the election are National Democratic
Alliance's nominee Ram Nath Kovind and Meira Kumar of the United Progressive Alliance.
In specific sectors, fast moving consumer goods, banks and pharmaceutical stocks are likely to
extend gains in the week ahead. Good monsoons have also kept investors upbeat on stocks of fast
moving consumer goods and automobile manufactures. Among specific stocks, shares of Wipro will
be in focus after the company said its board will mull buyback of shares at its board meeting on Jul
20.
Source : Cogencis Information Services Ltd.
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Indian Market Outlook for the week – 17 to 21.07.2017
( www.rupeedesk.in )
Source : Cogencis Information Services Ltd.
