Indian Markets Outlook for the week – 02.Nov.2015 to 06.Nov.2015
Earnings, Bihar exit polls to lend cues next week
( www.rupeedesk.in )
Earnings
of major companies for the quarter ended September will set the trend for
equities
next week, with investors also keeping an eye on the exit polls for the Bihar
election
on Thursday. The bias for the broad market is likely to be weak, especially
after
the
National Stock Exchange's Nifty erased gains in the second half of the session
yesterday
to end down 0.6% at 8065.80 points. The S&P BSE Sensex ended down 0.7%
at
26656.83 points. The way markets closed on Friday, we expect decline to
continue on
Monday
as well, mainly in midcap and small cap space. So, traders should better trade
with
strict stop losses or hedge the positions otherwise damage could be severe.
However,
if earnings of major companies are good, the rebound in the index may take the
Nifty
towards 8180-8200 points. With polling in the Bihar Assembly elections ending
on
Thursday,
exit polls will be a key indicator of the next ruling party in the state. A win
for
the
Bharatiya Janata Party will boost sentiment as it will mean higher
representation for
the
party in the Rajya Sabha, where key bills such as the constitutional amendment
to
introduce
the Goods and Services Tax are stuck.
Earnings
of Nifty constituents--Cipla, Oil & Natural Gas Corp, GAIL India, State
Bank
of
India, Bank of Baroda, Punjab National Bank, Tech Mahindra, Bharat Heavy
Electricals,
Adani Ports and Special Economic Zone, Bosch, and Power Grid Corp of
India--will
also be in focus next week. Public sector banks and oil and gas companies'
will
be the major earnings to watch out for next week. With some major public sector
banks
reporting their Jul-Sep earnings, the Bank Nifty is seen finding support at
16600
points
and facing resistance at 18000 points. The analyst expects the bias for the
index to
be
negative.
Yesterday,
the Bank Nifty ended up 0.8% at 17354.50 points aided by gains in ICICI
Bank
and Kotak Mahindra Bank due to robust Jul-Sep earnings. Among stocks that were
in
focus yesterday, Larsen & Toubro is seen extending its decline next week
after it fell
over
4% to 1,410.75 rupees as the engineering major sharply cut its order inflow
growth
guidance
for the current financial year to 5-7% from 15% earlier. After falling 4.4% to
334.65
rupees, ITC is seen weak after it reported a flat net profit growth for Jul-Sep
at
24.31
bln rupees, lower than analysts' estimate of 26.15 bln rupees.( www.rupeedesk.in )