( www.rupeedesk.in )
The bull run in equities is set to continue next week as well on the back of buoyant foreign fund
flows after indices hit record highs yesterday. Yesterday, equities rose nearly 2% pushing the
National Stock Exchange's Nifty above the 8300-mark and S&P BSE's Sensex above 27800
points riding on the optimism over a spate of government reforms and robust corporate earnings.
Sensex hit a lifetime high of 27894.32 and ended at a record closing high of 27865.83, up 519.50
points or 1.9%. Nifty touched a lifetime high of 8330.75 points and ended at a record high of
8322.20, up 153 points or 1.9%.
The dash towards new all time highs after one month corrective phase signals resumption of
upward momentum after a brief pause. Going forward, we expect benchmarks (Sensex, Nifty) to
remain in a rising trajectory and head towards 28300/8450 levels over the medium-term.
While the underlying sentiment is bullish, action in the truncated week is expected to
increasingly remain company specific as several companies are scheduled to report their
earnings.
The stock market will be closed on Tuesday for Moharram and Thursday for Gurunanak Jayanti.
Jindal Steel & Power, Bank of Baroda, and Larsen & Toubro are among the Nifty majors
reporting earnings next week. Bank of India, Dabur India, Aban Offshore, Thermax, Torrent
Power, Bata India, Colgate Palmolive India, IRB Infrastructure Developers, Tata Global
Beverages, Ashok Leyland, Aurobindo Pharma, Cadila Healthcare, Cummins India, Canara
Bank and Indian Bank are some of the other major companies reporting earnings next week.
Besides earnings, the Street's focus will also be on the monthly sales numbers of automobile
companies that will be released Saturday. Investors are bracing for strong October sales numbers
from the companies which witnessed good demand in the festival season. Maruti Suzuki's sales
in the festival season witnessed a 10% on-year growth.
Global developments will also be watched by the investors. China and US manufacturing data is
due next week. Investors are expect positive on rate sensitive sectors, particularly banks, and
expect it to gain further. Major indicators are still giving positive signals and further possibilities of rise can be seen in coming sessions.
