Indian Markets Outlook for the week – 04.08.2014 to 08.08.2014
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
Indices are expected to witness volatility next week amid hectic news flow from the
Reserve Bank of India's third bi-monthly monetary policy review on Tuesday, corporate
earnings for Apr-Jun and global markets.
The RBI is likely to keep the policy repo rate at 8.00%, given the lack of clarity on
inflation levels due to the high base effect. With the delayed, albeit recovering, monsoons
too playing a part in shaping expectations of interest rates and inflation, the prevailing
sense of uncertainty may lead the central bank into maintaining status quo and
waiting for things to unfold.
Inflation is still a challenge. While the most recent inflation print for June was milder
than expected, rising food prices due to weak monsoon rains remain a concern.
Apart from the RBI, investor attention will be drawn by companies reporting Apr-Jun
results, including Power Grid Corp of India, Hero MotoCorp, Jindal Steel and Power and
banking major State Bank of India, all Nifty majors.
In the non-Nifty pack, Andhra Bank, Godrej Properties, Marico, Oriental Bank of
Commerce, Punj Lloyd, Tata Communications, Crompton Greaves, Adani Ports and
Special Economic Zone, Adani Power, Apollo Tyres, GlaxosmithKline Consumer
Healthcare, and Tata Teleservices (Maharashtra) are among the companies that will detail
their earnings.
Amid all this, developments in global markets and the rupee movement will be closely
watched.
Yesterday, the rupee slumped for the second consecutive session to end at an over fourmonth
low against the US currency as the dollar gained broadly on expectation that positive economic data from the US could prompt the Federal Reserve to hike interest rates sooner.
As the rupee hit an over four-month low, breaching the 61-per-dollar mark, equities took
a beating too, to end at an over two-week low, amid the selloff in global equities.
Posting its biggest drop in over three weeks, the National Stock Exchange's 50-share
Nifty breached the 7600-point mark for the first time since Jul 8. The Nifty closed at
7602.60, down 118.70 points. The 30-share S&P BSE Sensex posted a loss of 414.13
points, ending at 25480.84, down 1.6%.
Intraday, the Nifty moved between 7593.90 points and 7716.70 points, while the Sensex
moved between 25459.13 and 25862.68 points. Next week, the Nifty is seen moving in a
range of 7450-7700 points. In case of extreme selloff, 7400 points is expected to act as support for the Nifty.
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
