Indian Market Outlook for the week – 08 to 12.05.2017
Indian Market Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The Nifty 50 is expected to fall to 9200 points next week due to risk aversion among investors across the globe and lack of clarity over the ordinance signed by the President to amend banking laws. The ongoing earnings season and the second round of French Presidential elections on Sunday will also add to the uncertainty in the market. -President Pranab Mukherjee on Thursday gave his assent to the ordinance, which amended banking laws for resolution of stressed assets in a time-bound manner. -The banking sector is seen weak in the short term as Finance Minister Arun Jaitley's press meet held earlier failed to provide details, in-particular to the timeline given for the resolution. -Yesterday, most public-sector banks such as Bank of Baroda and State Bank of India ended 1-4% lower, and the Nifty PSU Bank index, which declined 1.8%, was the worst hit among all sectoral indices. -Profitability of banks can fall as their provisions will rise if they are told to resolve the NPA problem quickly. -Besides banks, metal and oil refining space is expected to remain weak in the near term as concerns over glut in oil supply and slowdown in global economic growth are likely to hit sentiment. The High valuation of most stocks at present is likely to limit gains in indices next week. The Nifty 50 companies detailing their earnings next week include Asian Paints, Bharti Airtel, Dr Reddy's Laboratories, Hero Motocorp, Bharti Infratel, HCL Technologies and Zee Entertainment Enterprises. The outcome of the second round of polling in the French presidential elections, scheduled for Sunday, and its impact on global markets will be monitored next week. Investors will also eye the employment data in the US for April, due for release later today. Economists forecast that the US added 190,000 jobs last month. The comments of US Federal Reserve officials on interest rates and economic growth may also provide cues for domestic equities next week. Several Federal Reserve officials including Chair Janet Yellen and her deputy Stanley Fischer are due to speak later in the day.
Source : Cogencis Information Services Ltd.
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Indian Market Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The Nifty 50 is expected to fall to 9200 points next week due to risk aversion among investors across the globe and lack of clarity over the ordinance signed by the President to amend banking laws. The ongoing earnings season and the second round of French Presidential elections on Sunday will also add to the uncertainty in the market. -President Pranab Mukherjee on Thursday gave his assent to the ordinance, which amended banking laws for resolution of stressed assets in a time-bound manner. -The banking sector is seen weak in the short term as Finance Minister Arun Jaitley's press meet held earlier failed to provide details, in-particular to the timeline given for the resolution. -Yesterday, most public-sector banks such as Bank of Baroda and State Bank of India ended 1-4% lower, and the Nifty PSU Bank index, which declined 1.8%, was the worst hit among all sectoral indices. -Profitability of banks can fall as their provisions will rise if they are told to resolve the NPA problem quickly. -Besides banks, metal and oil refining space is expected to remain weak in the near term as concerns over glut in oil supply and slowdown in global economic growth are likely to hit sentiment. The High valuation of most stocks at present is likely to limit gains in indices next week. The Nifty 50 companies detailing their earnings next week include Asian Paints, Bharti Airtel, Dr Reddy's Laboratories, Hero Motocorp, Bharti Infratel, HCL Technologies and Zee Entertainment Enterprises. The outcome of the second round of polling in the French presidential elections, scheduled for Sunday, and its impact on global markets will be monitored next week. Investors will also eye the employment data in the US for April, due for release later today. Economists forecast that the US added 190,000 jobs last month. The comments of US Federal Reserve officials on interest rates and economic growth may also provide cues for domestic equities next week. Several Federal Reserve officials including Chair Janet Yellen and her deputy Stanley Fischer are due to speak later in the day.
Source : Cogencis Information Services Ltd.
