Indian Markets Outlook for the week – 15.09.2014 to 19.09.2014
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
Stock indices are likely to continue their rangebound movement next week, due to
disappointing industrial growth data for July. India's industrial growth slowed to 0.5% in
July against expectations of 1.8%, data released yesterday. Consumer price inflation for
August was at 7.8%, in line with expectations.
Most market players do not see the Nifty slipping below the 8000-point mark due to the
data. Resistance for the Nifty is pegged at 8200 points.
On Monday, the commerce and industry ministry will detail the Wholesale Price Indexbased
inflation data. India's inflation rate based on the WPI is likely to have fallen to a
near five-year low of 4.5% in August, mostly due to statistical impact of a high base. In
July, WPI inflation rate was at a five-month low of 5.19%.
Investor attention next week will also be on US Federal Open Market Committee's twoday
monetary policy meeting that begins on Tuesday. Investors will closely watch out for
the Fed's stance on interest rates at the policy announcement, which is due after market
hours on Wednesday.
Crude oil prices and movement of the rupee will also be closely watched. Among sectors,
outlook for the pharmaceutical sector is positive and most see shares of Lupin and Cipla
advancing further.
We remain positive on pharma sector given the robust growth in US generics and healthy
sales in domestic market which would drive margin expansion for most of our coverage
universe. Lupin remains our top large cap pick while IPCA Labs and Alembic would be
the preferred mid caps. Market participants expect mid-cap shares to continue to move
up.
However, select shares like Gujarat State Fertilizers and Chemicals may attract some
profit booking. The stock rose nearly 44% this week
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
