Indian Market Outlook for the week – 03 to 07.04.2017
Indian Market Outlook for the week – 03 to 07.04.2017
( www.rupeedesk.in )
Benchmark equity indices are seen trading in a narrow range next week with a positive bias as investors are likely to look at global markets for cues. The outcome of the Reserve Bank of India's bi-monthly monetary policy for 2017-18 (Apr-Mar) on Wednesday and Thursday will also lend cues to
the markets. At the RBI's last monetary policy meeting in February, the monetary policy committee, had left the repo rate unchanged at 6.25% and shifted the stance of the monetary policy to 'neutral' from accommodative. Markets will be closed on Tuesday due to Ram Navami festival. Even though the central bank is likely to maintain status quo on interest rates, market is expecting announcements of some steps to mitigate the bad loan problems in the banking sector. This follows Finance Minister Arun Jaitley's comments last week on "some decision" on the burning issue of the banking sector's non-performing assets. The finance minister had said that there is some policy decision between the RBI and government that will put adequate pressure on defaulters to settle their debt. We expect this is a positive mainly for stocks of state-owned banks, which are expected to continue their upward trend next week. Today, the Nifty ended flat at 9173.75 points, and the Nifty Bank Index fell 176.55 points, or 0.8% at 21444.15 points. In March, the Nifty 50 was up 3.3%, while the Nifty Bank was up 4.1%. Stocks of cement and infrastructure companies are also likely to be active on hopes of an increased focus of the government of developing infrastructure in the new financial year. The stock markets don't look bad to me and any corrections in the stock markets even because of any weakness in global markets will be viewed as an opportunity to buy local shares. We do not expect a rate cut by the RBI, but the strong foreign fund flows, the strength in the rupee, and the roll out of the GST (Goods and Services Tax) on Jul 1 as positives for the stock markets. The Nifty 50 is likely to range 9125-9225 next week. Among stocks which could be under watch and face some pressure will be shares of automobile companies, ahead of their monthly sales numbers, and information technology stocks ahead of their Jan- Mar results to be announced in Apr. Focus will be on the monthly sales figures of automobile companies for March. While the shares of companies manufacturing passenger car, scooter, and motorcycle may not suffer, those of commercial vehicle makers may be under pressure. Commercial vehicle makers like Tata Motors and Ashok Leyland are offering steep discounts as the ban on sale and registration of Bharat Stage-III compliant vehicles kicks in Saturday. Among heavy marketweight stocks, shares of Reliance Industries are likely to be in focus on market talk that its telecom arm Reliance Jio Infocomm will be launching new tariff plans in the near term.
Source : Cogencis Information Services Ltd.
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Indian Market Outlook for the week – 03 to 07.04.2017
( www.rupeedesk.in )
Benchmark equity indices are seen trading in a narrow range next week with a positive bias as investors are likely to look at global markets for cues. The outcome of the Reserve Bank of India's bi-monthly monetary policy for 2017-18 (Apr-Mar) on Wednesday and Thursday will also lend cues to
the markets. At the RBI's last monetary policy meeting in February, the monetary policy committee, had left the repo rate unchanged at 6.25% and shifted the stance of the monetary policy to 'neutral' from accommodative. Markets will be closed on Tuesday due to Ram Navami festival. Even though the central bank is likely to maintain status quo on interest rates, market is expecting announcements of some steps to mitigate the bad loan problems in the banking sector. This follows Finance Minister Arun Jaitley's comments last week on "some decision" on the burning issue of the banking sector's non-performing assets. The finance minister had said that there is some policy decision between the RBI and government that will put adequate pressure on defaulters to settle their debt. We expect this is a positive mainly for stocks of state-owned banks, which are expected to continue their upward trend next week. Today, the Nifty ended flat at 9173.75 points, and the Nifty Bank Index fell 176.55 points, or 0.8% at 21444.15 points. In March, the Nifty 50 was up 3.3%, while the Nifty Bank was up 4.1%. Stocks of cement and infrastructure companies are also likely to be active on hopes of an increased focus of the government of developing infrastructure in the new financial year. The stock markets don't look bad to me and any corrections in the stock markets even because of any weakness in global markets will be viewed as an opportunity to buy local shares. We do not expect a rate cut by the RBI, but the strong foreign fund flows, the strength in the rupee, and the roll out of the GST (Goods and Services Tax) on Jul 1 as positives for the stock markets. The Nifty 50 is likely to range 9125-9225 next week. Among stocks which could be under watch and face some pressure will be shares of automobile companies, ahead of their monthly sales numbers, and information technology stocks ahead of their Jan- Mar results to be announced in Apr. Focus will be on the monthly sales figures of automobile companies for March. While the shares of companies manufacturing passenger car, scooter, and motorcycle may not suffer, those of commercial vehicle makers may be under pressure. Commercial vehicle makers like Tata Motors and Ashok Leyland are offering steep discounts as the ban on sale and registration of Bharat Stage-III compliant vehicles kicks in Saturday. Among heavy marketweight stocks, shares of Reliance Industries are likely to be in focus on market talk that its telecom arm Reliance Jio Infocomm will be launching new tariff plans in the near term.
Source : Cogencis Information Services Ltd.
