Indian Markets Outlook for the week – 02.02.2015 to 06.02.2015
( www.rupeedesk.in )
The consolidation in equities is
expected to continue next week and the underlying sentiment is
slightly weak after major banks
reported disappointing earnings. Corporate earnings and Reserve
Bank of India's monetary policy
are the key events to be watched.
The RBI's sixth bi-monthly
monetary policy, to be released on Tuesday, however, may largely
turn out to be a non-event, as
the central bank is widely expected to keep rates unchanged after
the surprise 25-basis-point cut
announced earlier this month. Most expect the RBI to take the
next rate cut only after the
Union Budget. Therefore, earnings will take centre stage.
However, some traders see
yesterday's fall as the start of a correction before the pre-budget rally
actually begins. Bank stocks,
which fell sharply yesterday, are expected to fall further next week,
which will also weigh on
benchmark indices. Banking stocks, which had run up quite a bit since
the last two weeks will be
trading with a downward bias in the next week.
While banks are expected to trade
weak, information technology stocks are seen doing well,
which may provide some downside
support to the market.
Stock of Coal India, whose offer
for sale received an overwhelming response may face further
selling pressure on Monday, but
the downside is seen limited and the correction in the stock as a
buying opportunity. Automobile
stocks will be in focus on Monday as companies will release
their monthly sales data on
Sunday.
Index majors such as Bharti
Airtel, Tata Motors, Tata Steel, Tata Power, ACC, Punjab National
Bank, Lupin, GAIL (India), and
Hero MotoCorp will release their quarterly earnings next week.
Grasim Industries will report its
earnings on Saturday (Today).
Among others, Tech Mahindra is
expected to rise on Monday as the company posted higher than expected net profit for Oct-Dec,
and also announced 1-for-1 bonus issue and 2-for-1 stock split.
( www.rupeedesk.in )