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