Indian Markets Outlook for the week – 26 to 30.May.2014
(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)
Trade in the coming week is likely to be volatile on account of May futures and options
contract expiry. Underlying bias is positive, with many market participants expecting the
May contract to expire close to lifetime high levels.
Broadly, the National Stock Exchange's Nifty is seen moving in the 7200-7550 range.
The week will start with Narendra Modi taking oath as the 15th prime minister of India
on Monday. Jan-Mar earnings will be also in focus, with 14 Nifty constituents reporting
earnings next week for quarter ended March.
GAIL (India), Hero MotoCorp, Bharat Heavy Electricals, Bharat Petroleum Corp, Cipla,
Coal India, DLF, Hindalco Industries, Oil & Natural Gas Corp, Power Grid Corp of
India, Sun Pharmaceuticals Industries, Tata Motors, Tata Power Co, Larsen & Toubro,
Mahindra & Mahindra and NMDC will report fourth quarter earnings next week.
Engineering major Larsen & Toubro is seen reporting a net profit of 16.88 bln rupees for
Jan-Mar and net sales of 210.12 bln rupees. But what the Street would be closely
watching is L&T's order inflow and revenue growth guidance for 2014-15 (Apr-Mar).
For Tata Motors, strong sales of its UK-based subsidiary Jaguar Land Rover Automotive
Plc, is seen lifting its consolidated net profit 17% from a Year ago to nearly 46 bln
rupees.
Yesterday, Nifty closed at record closing level of 7367.10, up 90.70 points or 1.2%,
boosted by strong quarterly earnings from index heavyweight State Bank of India. S&P
BSE's Sensex also closed at a record closing level, at 24693.35, up 318.95 points or
1.3%. Stocks of the lender hit a three-year high of 2,777 intraday, before closing 9.6% up
at 2,753.50 rupees. Stocks of SBI face immediate resistance at 2,860 rupees. Bank Nifty,
which closed up 1.5% at 15285.50 points, is seen moving in the 15000-15700 range.
Market participants are also bullish on power stocks, which have rallied sharply this week
on hope of reforms in the sector. They are also positive on oil and gas, infrastructure,
mid-cap and small-cap stocks and expect them to trade positive next week.
(For Sectorwise Weekly Outlook Watch: www.rupeedesk.in)
