Indian Markets Outlook for the week – 14.07.2014 to 18.07.2014
(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)
(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.
