Indian Markets Outlook for the week – 23.May.2016 to 27.May.2016 (Seen stock specific next week; earnings in focus)

Indian Markets Outlook for the week – 23.May.2016 to 27.May.2016

(Seen stock specific next week; earnings in focus)

( www.rupeedesk.in ) 

Action in domestic equities will be stock-specific next week, as investors will focus on corporate earnings, 13 of which will be of Nifty 50 constituents. The underlying bias for the market is seen weak after benchmark indices declined nearly 1% this week. Yesterday, the Nifty 50 and S&P BSE Sensex ended down 0.4% each at 7749.70 points and 25301.90, respectively. Equities will also be volatile next week on account of the expiry of May derivatives contracts next week. Nifty (50) is trading on the edge and volatility will further inch higher due to derivative expiry in the coming week.

In addition, cues from global front and movement in crude oil prices will continue to influence our markets. Among sectors, banks' and other rate sensitive stocks may be under next week due to a weak rupee. Yesterday, the currency ended at its lowest level since Mar 2 at 67.44 per dollar. The weakness in the rupee, though, may benefit export-oriented sectors like information technology and pharmaceuticals. However, pharmaceutical giant Lupin may continue its decline next week. Yesterday, the stock slumped over 9% to 1,504.80 rupees on concerns over higher costs on Gavis Pharmaceuticals' integration and regulatory issues at the Goa unit.

EARNINGS WATCH

Among the 13 Nifty 50 companies that will report their March quarter earnings next week, State Bank of India will be particularly in focus for its asset quality. The stock hit a one-month low today as investors became jittery about the lender's asset quality after its state-owned peers reported a sharp rise in provisions and higher non-performing loans. India's largest lender will report its Jan-Mar earnings on May 27. Investors will also await Larsen & Toubro's and Tata Steel's earnings on Wednesday. On Monday, Tata Power will report its earnings. The integrated power company is expected to report a 95.96% year-on-year jump in consolidated net profit to 3.12 bln rupees for Jan- Mar. Other Nifty 50 companies that will report their earnings next week are Cipla, Tech Mahindra, Bajaj Auto, Bosch, GAIL India, Bharat Petroleum Corp Ltd, Oil & Natural Gas Corp, Power Grid Corp of India and Bharat Heavy Electricals Ltd.

Indian Markets Outlook for the week – 11.Apr.2016 to 15.Apr.2016 (Subdued in shortened week; cos' earnings eyed)

Indian Markets Outlook for the week – 11.Apr.2016 to 15.Apr.2016

(Subdued in shortened week; cos' earnings eyed)

( www.rupeedesk.in ) 

Indian Market Outlook for the week – 11 to 15.04.2016

(Subdued in shortened week; cos' earnings eyed)

Having lost 2% in the past five sessions, equities are set to remain subdued in the holiday-shortened week ahead in the run-up to the corporate earnings that will set the

tone for shares in the short- to medium-term.

Stock markets are closed on Thursday for Dr. Baba Saheb Ambedkar Jayanti and the

next day for Ram Navami. We believe the upcoming earning season, which is scheduled to begin next week, will provide the needed trigger for directional move.

Market participants should continue with stock-specific trading approach but avoid

overleveraging. Market participants are eagerly awaiting the results for the quarter and

the year ended Mar 31 as the previous financial year has been a difficult one for corporate India.

Sluggish demand in domestic and international markets due to global economic slowdown, particularly in China, hit companies' topline and bottomline growth in 2015-

16 (Apr-Mar).

Indian Markets Outlook for the week – 25 to 29.05.2015

Indian Markets Outlook for the week – 25 to 29.05.2015

 Jan-Mar earnings, expiry to be key next week

( www.rupeedesk.in )

With an action packed week ahead as many Nifty companies are scheduled to release their Jan-Mar earnings and the US will releases its economic growth data, share indices are seen moving within a range, but may also witness volatility due to expiry of May derivatives expiry on Thursday. Data on the US economic growth for Jan-Mar and housing starts for April will be looked at next week. While the data from the US may impact the market, its affect will be less than of local factors.

With the May derivatives contract expiring on Thursday, the market is likely to be volatile over the week as traders rollover their positions to the June series. The Nifty ended up 0.4% at 8458.95 points while S&P BSE Sensex ended at 27957.50 points. Public sector banks are seen weak, especially after State Bank of India reported its Jan-Mar earnings. In the immediate term banks, especially public sector banks, will perform poorly as SBI was a

sentimentally strong result. In the long term we see SBI as a good stock as asset quality would improve with better macro environment.

State Bank of India reported a net profit of 37.42 bln rupees for Jan-Mar against estimates of 36.72 bln rupees. The bank also reported a 70 bps decline in its gross non-performing assets ratio, with its gross NPAs falling to 567.25 bln rupees from 619.91 bln rupees as of the end of December. However, the bank sold 45.10 bln rupees of assets to asset restructuring companies, which the equity markets took as an explanation for the reduction in NPA ratio. Stock prices of the company declined 2.7% to 282.45 rupees.

Large-cap information technology stocks are also likely to do well while mid-caps are seen subdued, due to the steady depreciation in the rupee. Tech Mahindra, Tata Motors, Bharat Heavy Electricals, Coal India, Hindalco Industries, NMDC, Oil and Natural Gas Corp, Power Grid Corp of India, Cipla, Mahindra and Mahindra, Sun Pharmaceutical Industries and Larsen & Toubro are the Nifty companies reporting their earnings next week. Bosch, which will be included in the Nifty on May 29 at the expense of IDFC, will be reporting its Jan-Mar earnings on the same day. Other companies reporting their Jan-Mar earnings next week are Glenmark Pharmaceuticals, Jindal Steel and Power, ABG Shipyard, Ipca Laboratories, Bank of India, United Spirits, and United Breweries, among others

Indian Markets Outlook for the week – 11 to 15.05.2015

Indian Markets Outlook for the week – 11 to 15.05.2015

(www.rupeedesk.in)

Stock indices will take direction from developments in Parliament over key bills,

domestic economic data and corporate earnings next week. Although equities rebounded yesterday, we cannot get carried away with the recovery just yet as the gains have to besustained, which depends on factors such as progress of the Goods and Services Tax bill and the Land Acquisition bill, movement in crude oil prices, rupee and quarterly results. The Budget session of the Lok Sabha and the Rajya Sabha will conclude on May 13.

The indices ended up nearly 2% following formation of a panel by the government to

resolve Minimum Alternate Tax on foreign institutional investors’ issue. Appreciation of

the rupee, fall in crude oil prices and stabilisation of government bond prices globally

also aided gains.

Government's move to set up a high level committee to decide MAT issue could reduce

FII's concerns over the medium term. But the risks prevailing with Q4 (Jan-Mar earnings)

and outcome of key bills still remain. That the downtrend is not over yet is corroborated by the fact that foreign institutional investors remained net sellers even yesterday. On Monday, stock indices will take cues from global markets' reaction to the US non-farm payrolls data for April.

On Tuesday, the Central Statistics Office will release Consumer Price Index based

inflation data for April and Index of Industrial Production data for March.

Greece will also be in focus on Tuesday as the country has to pay back around 750 mln

euros of principal to the International Monetary Fund. On the earnings front, Dr Reddy's

Laboratories, Lupin and Bank of Baroda are the Nifty companies detailing Jan-Mar

earnings next week. We are positive on private bank, information technology and fast moving consumer goods shares next week while PSU banks are likely to extend losses.

Indian Markets Outlook for the week - 04 to 08.05.2015

Indian Markets Outlook for the week - 04 to 08.05.2015

(www.rupeedesk.in)

Stock indices are expected to tread lower in the coming week amid lack of any positive fundamental triggers, and lack of clarity on whether foreign institutional investors will have to pay minimum alternate tax for earlier transactions. Finance Minister Arun Jaitley, in his reply to a debate on the Finance Bill 2015, which was passed by the Lok Sabha today, said FIIs will not have to pay MAT from the current financial year and that its levy for the previous years would depend on a Supreme Court order.

Retrospective taxation fears and weak corporate earnings will continue to weigh heavily on the market. Introduction of key policy bills such as the one on Goods and Services Tax will be keenly watched next week. Indices have lost 1.5% each this week, and market participants believe further fall is on the cards. FIIs have been continuously on the short side. Also quarterly results are weak and monsoon is also not expected to be good. So fundamentally there are no positives. Market participants expect the National Stock Exchange to find initial support at 8100 points, breaching which sub-8000 levels on the index are likely to be seen.

Some market participants said a bounce back could be seen next week but the overall weak

sentiment would restrict any gains. Others advised utilising any bounce back to sell stocks.

Last trading day, the National Stock Exchange's Nifty ended at 8181.50, down 58.25 points or 0.7% from Wednesday's close, after testing a low of 8144.75 and a high of 8229.40 intraday. The S&P BSE Sensex closed at 27011.31, down 214.62 points or 0.8%. During the day, the Sensex touched a low of 26897.54 and a high of 27242.05.

Sector wise, market participants expect private banks and real estate stocks to extend gains next week. Market participants are bullish on private banks as some of them reported better-thanexpected Jan-Mar earnings this week.

Real estate stocks may extend gains next week as the government today said MAT will be exempted for gains from sale of real estate investment trust units. Tyre makers are set to gain on Monday as the finance minister said last day that the government would soon hike import duty on rubber to 25% from 20% at present.

On the earnings front, Kotak Mahindra Bank, Hero MotoCorp, Punjab National Bank, Grasim Industries and Hindustan Unilever will detail results for the quarter ended March next week. Others reporting Jan-Mar results next week include Adani Ports and Special Economic Zone, IDBI Bank, SKS Microfinance, Dabur India, South Indian Bank, Allahabad Bank, Eicher Motors and Titan Co.

Indian Markets Outlook for the week - 13 to 17.04.2015

Indian Markets Outlook for the week - 13 to 17.04.2015

 ( www.rupeedesk.in )

Ahead of the start of the Jan-Mar earnings season, market sentiment will remain cautious as

participants’ eye key economic data to be released next week. The Central Statistics Office is

scheduled to detail headline inflation based on the Consumer Price Index for March on Monday.

Through the week, the trend in global markets and earnings from a few companies will also be watched. On Tuesday, markets will remain shut for Dr. Baba Saheb Ambedkar Jayanti. Annual inflation rate for March, based on the Wholesale Price Index, which is likely to be released on Wednesday, is seen inching up to (-)1.9%, primarily because of the hike in petrol and diesel prices. We expect Q4FY15 (Jan-Mar) Nifty earnings to decline by 0.6% similar to decline of 0.6% in Q3FY15 (Oct-Dec). The deceleration in PAT (net profit) growth can be attributed to weak performance expected by metals, oil and gas, power equipment and construction stocks.

Among Nifty constituents, ACC, Tata Consultancy Services and IndusInd Bank will detail their earnings next week. Other companies include DCB Bank, Network18 Media and Investments, TV18 Broadcast, Mindtree and CRISIL Ltd. Shares in the mid-cap space, which have been outperforming their larger peers, are also likely to be in focus. These stocks are expected to continue gaining.

Indian Markets Outlook for the Week – 06 to 10.04.2015

Indian Markets Outlook for the Week – 06 to 10.04.2015

( www.rupeedesk.in )

Movement in benchmark stock indices is expected to depend on the Reserve Bank of India's

monetary policy, news flow ahead of Jan-Mar corporate earnings and global developments.

Last week Wednesday, there was talk in the market that the central bank would further ease its monetary policy in its meeting on next week Tuesday. The RBI has already cut its benchmark lending rate by 50 basis points this year.

Though corporate earnings are not expected to be released next week, the market is likely to react to news flow ahead of Jan-Mar results season. Earnings in Jan-Mar may be at par or slightly better than the previous quarter. However, a recovery would only take place in the September quarter.

On the international front, details from the US Federal Open Market Committee's monetary policy meeting will be released on Wednesday. As we have a long weekend ahead, participants should keep a close watch on global cues as they may influence the early trades on Monday.

Traders should uphold stock-specific trading approach and prefer counters from private banking, automobile, infrastructure and Pharmaceutical space for fresh buying. On the other hand, further rebound in PSU banking, energy and metal and realty space may attract selling pressure so plan your positions accordingly.

Information technology stocks are expected to continue their decline next week after HCL

Technologies stated that appreciation in the dollar would negatively impact their Jan-Mar revenue and earnings before interest and tax margin.

Indian Markets Outlook for the week - 23 to 27.03.2015

Indian Markets Outlook for the week - 23 to 27.03.2015

 ( www.rupeedesk.in )

Stocks indices are seen correcting further next week with volatility expected ahead of the

derivates expiry on Thursday and with investors looking forward to the Jan-Mar earnings.

Ahead of the expiry, profit will be taken in stocks which had an upside. From April, people will start looking freshly at the year ahead with the earning in focus.

Most market participants expect subdued earnings for Jan-Mar, especially with the disappointing earnings seen in the previous quarter. There is no major trigger and the market is lagging because of that. All sectors are showing weak trends. Quarterly earnings will be the next big trigger.

We also expect volatility to persist in the market as the Vix is not falling and also because of

derivates expiry next week. Among sectors, banking, auto and other aggressive sectors are seen as weak next week. Among sectors, banking stocks are widely expected to remain subdued next week as valuations are expensive.

Pharmaceutical stocks are seen positively being a defensive along with Information Technology.

IT stocks have seen a correction post revisions in earnings forecast and now they are likely to

rise.

Some of index heavyweights are still trading in oversold zone so strengthening the possibility of technical rebound in the coming sessions.

Indian Markets Outlook for the week – 1.09.2014 to 05.09.2014

Indian Markets Outlook for the week – 1.09.2014 to 05.09.2014

( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )

Indian stock indices are seen trading firm this week after they ended at record closing

levels on Thursday, and as long positions were rolled into the September derivatives

series.

The better than estimated GDP growth data outcome is also expected to boost the positive

sentiment in market.

Indian economy expanded 5.7 percent in the first quarter of FY15, the highest in nine

quarters, against a growth of 4.6 percent in Q4 of 2013-14. The economy grew 4.7

percent in the year-ago period. The economy grew at its highest pace since the fourth

quarter of FY12.

However, Supreme Court hearing on coal block allocations today will be the key in

determining the trend for this week. Earlier last week, the apex court declared all coal

block allocations since 1993 as illegal, saying that no proper procedure was followed

while awarding these blocks.

The threat that the apex court may de-allocate the coal blocks remains and Metal, Mining,

and power sector stocks may trade subdued because of that. Jindal Steel and Power,

which took the maximum beating from the Supreme Court's ruling earlier this week, will

be closely watched. The stock ended down 4.6% at Rs.233. From the beginning of last

week, the stock has lost 26.3%.

Automobile stocks will also be in focus as companies release sales data for August which

is expected that the auto-makers to report strong sales numbers for August, aided by

lower base effect.

The Nifty is seen to breach 8000 perhaps in this week as the fresh F&O expiry is going to

start with the positive rollovers in index and in core sector stocks.

Nifty is seen drawing strong support between 7850-7900 points. The resistance levels is being stood at 8050/8100 levels.

( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )

Indian Markets Outlook for the week – 14.07.2014 to 18.07.2014

Indian Markets Outlook for the week – 14.07.2014 to 18.07.2014

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

Next week, the benchmark indices will take cues from economic data and earnings of

companies for the quarter ended June. The trend in global markets will also be watched.

Later today, the Central Statistics Office will release the Index of Industrial Production

data for May. India's industrial production is likely to have expanded to a 19-month high

of 3.8%, mainly on account of an improvement in exports and a low base effect. On

Monday, inflation rate for June, based on both the Consumer Price Index and Wholesale

Price Index, will be released.

These indicators are important, as they will give an insight into the Reserve Bank of

India's likely action on interest rates in its monetary policy in August. Among earnings,

Nifty constituents Kotak Mahindra Bank, Bajaj Auto, and Tata Consultancy Services will

detail their earnings next week.

Others that will announce their results include Bajaj Finserv, Federal Bank, South Indian

Bank, CRISIL, Reliance Infrastructure, Reliance Power, and Zee Entertainment

Enterprises.

Market sentiment is seen cautious next week, after the correction this week. Today, the

indices fell for the fourth consecutive session to a five-week low, as shares of ratesensitive

companies took a major beating.

On a week-on-week basis, the Nifty and Sensex ended 3.8% and 3.6% lower

respectively. Nifty ended below 7500 points at 7459.60, down 108.15 points from the

previous close. Intraday, it tested a low of 7447.20, while the high for the day was

7625.85. The Sensex closed at 25024.35, down 348.40 points. Intraday, it moved

between a low of 24978.33 and a high of 2548.33.

Market participants expect Nifty to find support at 7300. Although the short-term trend

has turned down, the medium-term trend continues to remain positive.

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

Indian Markets Outlook for the week – 30.06.2014 to 04.07.2014

Indian Markets Outlook for the week – 30.06.2014 to 04.07.2014

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

                In anticipation of tough but much-needed reforms in the final budget on Jul 10,

benchmark indices are seen trading with a continued positive bias next week. Gains are

also likely to be supported by the fact that most market participants believe that

consolidation in the indices is drawing to a close. We believe, this time-wise corrective

phase will get over in the coming week and the index will resume its broader uptrend.

               However, these gains are likely to be capped as the recent rally in equities has partly

factored in some likely positives from the budget. We feel that a progressive budget as

well as other reform initiatives will likely lead to continued outperformance of Indian

indices versus emerging market peers.

              While speculation about the likely content of budget may influence stock prices, market

participants will continue to maintain a hawk's eye on the progress of the monsoon.

According to latest updates, 14 days after hitting the Kerala coast, the southwest

monsoon has now covered half of the Indian mainland. However, it still remains five

days behind the normal date of covering the entire central India.

             The India Meteorological Department has also lowered its forecast for Jun-Sep rainfall to

93% of the long-period average from 95% predicted in April. Among sectors, automobile

stocks will grab the limelight as companies detail their monthly sales numbers for June.

For the week ahead, the National Stock Exchange's 50-share Nifty is seen moving in a

range of 7400-7700 points. A few on the Street have not ruled out the possibility of a

lifetime high being tested either. Both the Nifty and the S&P BSE's Sensex tested their

lifetime highs of 7508.80 points and 25099.92 points respectively on Jun 11.

              Yesterday's movement saw market participants preferring to lie low ahead of the

weekend, as a result of which benchmark indices ended with marginal gains, after

moving in a thin range through the day.

               Nifty reclaimed the 7500-points mark, ending at 7508.80, up 15.60 points or 0.2% from

close Thursday. Intraday, the index touched a low of 7482.30 and a high of 7538.75.The

S&P BSE Sensex ended the day at 25099.92, up 37.25 points or 0.1%, after moving between 25032.94 and 25209.61 intraday.

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

Indian Markets Outlook for the week – 23 to 27.Jun.2014

Indian Markets Outlook for the week – 23 to 27.Jun.2014

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

     Trade in equities is expected to be volatile next week as rollover of positions to the July

series will begin with the current month derivatives series expiring on Thursday. On

Monday, the market will react to the hike in freight rates and passenger fares announced

by the government after market hours yesterday. Effective Jun 25, the government has

increased passenger rail fares by 14.2% and freight rates by 6.4%.

     Although the hike in fares and freight rates will impact inflation, market participants view this move as a positive because it will help improve the financial situation of Indian

Railways. WPI inflation is likely to see a marginally larger impact (the railway accounts

for around 35% of freight traffic in India) as the cost of transporting goods such as coal,

cement, oil, steel and food grains will rise.

     However, the hikes will improve the profitability of the railways, and hence they are a

move in the right direction. However, a few see the contract expiring closer to 7600

levels provided. National Stock Exchange's Nifty sustains above 7500. "7500 is a very

strong support for Nifty and if this is broken then a sell-off is likely," Traders may not

aggressively roll over their positions as the (Union) Budget is due next month and they

would want to see what the government does. If the index manages to sustain above

7500, then a short covering rally can be seen which will help the index futures expire

close to 7600 levels,

     Yesterday, the Nifty ended at 7511.45, down 29.25 points or 0.4% from Thursday.

Intraday, the index briefly slipped below the 7500-mark to touch a low of 7497.30. The

high for the day was 7560.55. S&P BSE's Sensex closed at 25105.51, down 96.29 points

or 0.4%. The 30-stock index hit a low of 25056.18 and high of 25276.31 intraday.

The hike in freight rates is expected to drag down shares of cement, mining and metal, oil

and gas, fertiliser, and logistics companies. Market participants expect the stocks to

witness a knee-jerk reaction as companies may not be able to pass on the hike to

consumers immediately. For cement companies especially, it will be difficult given the

weak demand, but market participants expect the impact to get neutralised over the next

few months as demand picks up.

     Banks are expected to trade with a positive bias next week and buying may emerge in

private sector banks. But Kotak Mahindra Bank may take a hit on Monday as MSCI will

exclude it from the Global Standard Index from Jul 8.

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

Indian Markets Outlook for the week – 16 to 20.Jun.2014

Indian Markets Outlook for the week – 16 to 20.Jun.2014

(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)

     Global developments will be key for Indian share indices next Week as geopolitical

tensions in Iraq triggered a selloff across global equities yesterday. We will also take

cues from the outcome of US Federal Open Market Committee's two-day policy meeting

on Tuesday and Wednesday. The week will begin with the release of Wholesale Price

Index-based inflation data for May on Monday.

     According to a Cogencis poll, the WPI inflation rate is likely to rise to 5.3% from 5.2% in

April, due to statistical impact of a low base and lingering effects of high food prices.

The 1.09-rupee-per-ltr increase in diesel prices during May will also intensify upward

pressure on inflation. Yesterday 'Friday the 13th', equities witnessed across-the-board

selloff, bogged down by the rupee, which hit a one-month low and global crude oil

prices, which rose to a nine-month high amid the civil war in Iraq. If the tensions in Iraq

show no signs of abating, indices may see some more selling. Indices are likely to

remain under pressure depending on how long the Iraq crisis lasts. The market has run

up ahead of fundamentals in the last few months and so, such corrections happen.

That's when the convictions surrounding expectations get challenged.

     Indices had run up over 20% since March on India election-related euphoria and hopes

that the new government will push economic reforms. With the markets having

witnessed sharp gains, the scope for compression in multiples is very large. For further

gains, it is very important for the index to cross the 7700 mark decisively. Yesterday, the

Nifty ended at 7542.10, down 107.80 points or 1.4%. Intraday, the index fell 1.6% to

touch a low of 7525.35 and rose substantially to touch a high of 7678.50. The S&P BSE

Sensex closed at 25228.17, down 348.04 points or 1.4%, after hitting intraday low of

25171.61 and a high of 25688.31.

     Rate-sensitive stocks may witness further profit-booking next week while defensive

stocks may gain if the rupee weakens further. Monday, stocks of Idea Cellular may rise

as the Reserve Bank of India has said that foreign institutional investors can now buy up

to 49% in the telecom company.

Indian Markets Outlook for the week – 26 to 30.May.2014

Indian Markets Outlook for the week – 26 to 30.May.2014

(www.rupeedesk.in)

Trade in the coming week is likely to be volatile on account of May futures and options

contract expiry. Underlying bias is positive, with many market participants expecting the

May contract to expire close to lifetime high levels.

Broadly, the National Stock Exchange's Nifty is seen moving in the 7200-7550 range.

The week will start with Narendra Modi taking oath as the 15th prime minister of India

on Monday. Jan-Mar earnings will be also in focus, with 14 Nifty constituents reporting

earnings next week for quarter ended March.

GAIL (India), Hero MotoCorp, Bharat Heavy Electricals, Bharat Petroleum Corp, Cipla,

Coal India, DLF, Hindalco Industries, Oil & Natural Gas Corp, Power Grid Corp of

India, Sun Pharmaceuticals Industries, Tata Motors, Tata Power Co, Larsen & Toubro,

Mahindra & Mahindra and NMDC will report fourth quarter earnings next week.

Engineering major Larsen & Toubro is seen reporting a net profit of 16.88 bln rupees for

Jan-Mar and net sales of 210.12 bln rupees. But what the Street would be closely

watching is L&T's order inflow and revenue growth guidance for 2014-15 (Apr-Mar).

For Tata Motors, strong sales of its UK-based subsidiary Jaguar Land Rover Automotive

Plc, is seen lifting its consolidated net profit 17% from a Year ago to nearly 46 bln

rupees.

Yesterday, Nifty closed at record closing level of 7367.10, up 90.70 points or 1.2%,

boosted by strong quarterly earnings from index heavyweight State Bank of India. S&P

BSE's Sensex also closed at a record closing level, at 24693.35, up 318.95 points or

1.3%. Stocks of the lender hit a three-year high of 2,777 intraday, before closing 9.6% up

at 2,753.50 rupees. Stocks of SBI face immediate resistance at 2,860 rupees. Bank Nifty,

which closed up 1.5% at 15285.50 points, is seen moving in the 15000-15700 range.

Market participants are also bullish on power stocks, which have rallied sharply this week

on hope of reforms in the sector. They are also positive on oil and gas, infrastructure,

mid-cap and small-cap stocks and expect them to trade positive next week.

Indian Markets Outlook for the week - 19 to 23.May.2014

Indian Markets Outlook for the week - 19 to 23.May.2014
(www.rupeedesk.in)

With the most keenly awaited event--the outcome of Lok Sabha elections--now

behind them, investors are back to square one, shifting focus to quarterly

earnings, economic data, and trends in overseas markets. Next week, indices

are seen moving in range as profit booking is likely noting this week's sharp

rally. However, the market will take note of the final result of the 2014 Lok

Sabha elections expected later yesterday. Yesterday, National Stock Exchange's

Nifty and BSE's Sensex witnessed their biggest single day gain for the first

time since May 18, 2009. On May 18, 2009, the first day of trade after the 2009

election results were announced, share indices hit the 20% upper circuit in

reaction to the United Progressive Alliance government's phenomenal win.

Yesterday, indices rocketed 6% taking Nifty above 7500 points and Sensex

above 25000 points. That the Bharatiya Janata Party-led National Democratic

Alliance would achieve a clear mandate was largely factored in by the market,

which resulted in profit taking in the second half of the session. This profit

taking is likely to spill over to next week. We remain optimistic on the long

term prospects of the markets. However, in the short term, markets may remain

ranged or may even come under some profit-booking, especially after the sharp

rise witnessed in the recent past.

We see Nifty in the 7100-7400 range next week and expect some momentum in

the mid-cap space. Nifty ended at 7203.00, up 79.85 points or 1.1% after

touching a record high of 7563.50 intraday. Sensex closed at 24121.74, up

216.14 points or 0.9% after testing a record high of 25375.63 points. Large-cap

stocks, particularly rate-sensitive ones, are expected to see profit booking next

week, but accumulating them on dips as the overall outlook is positive. We see

Bank Nifty rising above 15000 points yet again next week, but it may face

resistance at 15400 points. Among banks, HDFC Bank will be in focus on

Monday as the bank's board will consider raising capital on the day.

On the earnings front next week, IL&FS Engineering and Construction Co,

Jubilant Food Works, Reliance Infrastructure, Mangalore Refinery and

Petrochemicals, Ashok Leyland, Gujarat State Petronet, State Bank of India,

and Strides Arcolab will be in focus. Among global events, will eye the release

of the minutes of US Federal Open Market Committee's Apr 29-30 meet in the

coming week.

Indian markets Outlook for the week - 05 to 09.May.2014

Indian markets Outlook for the week - 05 to 09.May.2014

(Sectorwise Weekly Outlook, View on www.rupeedesk.in )

     Benchmark indices are seen trading in a range next week but volatility is set to spike as well as market participants prepare themselves for May 16, when results of the general elections will be announced. The Street will also take cues from overseas markets and Jan-Mar earnings announcements from companies.

     Amid the expected increase in volatility, market players suggest investing in stocks depending on respective risk profiles. Many participants advise investing in defensive shares as volatility is expected to increase in the market.

     Others advise buying capital goods stocks as the sector is seen as one of the key beneficiaries if Bharatiya Janata Party wins the general elections with a strong majority. Infrastructure, real estate and banking sectors are also seen benefiting from a stable government at the Centre after the elections. Over the medium-to-long term, the formation of a stable government will likely put the infrastructure and industrial sector back on track as well as ease concerns on fiscal deficit thus, providing an upward bias to the current valuations.

     On the political front, phase eight of Lok Sabha polls will be held on Wednesday, covering 64 seats in seven states. Polling for 175 Assembly seats in Andhra Pradesh, two in Uttar Pradesh and one each in Bihar and West Bengal will also be held. Market participants see National Stock Exchange's 50-share Nifty trading in the 6600-6800-point range in the coming week.

     The 50-stock Nifty ended flat at 6694.80, down 1.60 points from close Wednesday, after moving between 6689.50 and 6737.65 intraday. The S&P BSE's 30-share Sensex ended at 22403.89, down 13.91 points or 0.1%. Intraday, it touched a low of 22386.95 and a high of 22575.62 points.

     Companies detailing earnings for the quarter ended March next week include Canara Bank, Housing Development Finance Corp, Titan Co, Allahabad Bank, United Bank of India, GlaxoSmithKline Consumer Healthcare, Piramal Enterprises, Corporation Bank, Torrent Pharmaceuticals and Magma FinCorp.

(www.rupeedesk.in)

(REGISTER FOR LIVE TRIAL TIPS CURRENCY / COMMODITY / EQUITY / OPTION / FOREX, Click Here: http://rupeedesk.in/rupeedeskfree-calls )

*Join Yahoo Messenger Chat To Receive Our Tips Instantly: rupeedesk@yahoo.com 
* For Subscription Contact: 09094047040 / 09841986753  /044-24333577

Indian Markets Outlook for the week - 17.02.2014 - 21.02.2014

www.rupeedesk.in

The interim budget for 2014-15 (Apr-Mar), to be presented by Finance Minister P. Chidambaram on Monday, will set the trend for local equities next week. As no major announcement is likely in the interim budget, trade will remain rangebound, and any rise will be used to book profits. We see the National Stock Exchange's nifty moving in the range of 5900-6200 points. Among specific sectors, banking stocks are likely to trade with a weak bias next week but public sector banks like State Bank of India, Bank of Baroda and Punjab National Bank may see some buying as they are in an oversold zone. Yesterday, State Bank of India slipped 1.7% to close at 1,475.10 rupees as its Oct-Dec net profit was below Street expectations, owing to worsened asset quality in the quarter. The Nifty ended at 6048.35, up 47.25 points or 0.8% from close Thursday, due to short covering, after moving between 5984.60 and 6056.40 during the day. The S&P BSE's Sensex ended at 20366.82, up 173.47 points or 0.9% after trading between 20149.01 and 20391.95. MCX Stock Exchange's SX40 closed at 12194.57, up 72.40 points or 0.6%. Intraday, it moved between 12073.62 and 12211.39.