Indian Markets Outlook for the week – 20 to 24.02.2017
Indian Markets Outlook for the week – 20 to 24.02.2017
( www.rupeedesk.in )
Domestic share indices may continue to rise next week, but trade will be volatile, as investors square off positions ahead of the expiry of the February derivatives contract on Thursday. Next week will be a shortened trading week because markets will be shut on Friday for Mahashivaratri celebrations. Benchmark indices ended up for the fourth consecutive week today, with both key indices gaining over 5% each from its close on Jan 20. The trend is likely to be up as the stocks are not giving up their gains of recent weeks. Bulls are not loosening their grip on the stock market and indices are unlikely to turn negative unless there are big outflows from foreign investors. Yesterday, the 51-stock Nifty 50 ended up 43.70 points or 0.5% at 8821.70 points, while the Sensex ended at 28468.75, up 167.48 points or 0.6%. Among the sector movers, the Nifty Pharma index gained 2.1%, followed by Nifty Bank, which rose 1.5%. The Nifty IT index ended down 1% on profit taking, but some are of the view that it could rise once again after Tata Consultancy Services details its share buyback plan Monday. Bank stocks are likely to stay choppy next week. The stock gained sharply today after the Reserve Bank of India Thursday lifted its ban on foreign investors buying into the stock. However, the central bank yesterday once again barred foreign investors from buying HDFC Bank stocks as their holding topped the 74% mark in less than a couple of hours of trading. Foreign investors are likely to have bought shares of HDFC Bank to the tune of $1 bln. Stocks of HDFC Bank touched a record high of 1,454 rupees, but ended up only 3.7% at 1,377.05 rupees. Stocks of Axis Bank hit a three-month high of 504 rupees after CLSA Asia Pacific Markets said a possible merger with Kotak Mahindra Bank will be positive. However, Axis Bank closed down 0.8% at 489.10 rupees, while Kotak Mahindra Bank, after also hitting a three-month high of 811 rupees, closed up 0.5% at 796.50 rupees. So yesterday's gain in the bank stocks can be termed as technical, pushed mainly by the heavy buying by foreign investors in HDFC Bank shares, and the gains (in bank shares) seen yesterday may not sustain next week. However, pharmaceutical stocks may see some more gains as investors will once again look for bargain buys in the sector on positive news. Stocks of Cadila Healthcare continued to rise and ended up 4.8% after it got approval from the US Food and Drug Administration for generic fluconazole tablets and clobetasol propionate spray. Cigarette makers' stocks are likely to be in focus next week as the Goods and Services Tax Council may discuss categorisation of tobacco products on Saturday, and decide to keep these products under the highest slab of 28% plus cess.
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Indian Markets Outlook for the week – 20 to 24.02.2017
( www.rupeedesk.in )
Domestic share indices may continue to rise next week, but trade will be volatile, as investors square off positions ahead of the expiry of the February derivatives contract on Thursday. Next week will be a shortened trading week because markets will be shut on Friday for Mahashivaratri celebrations. Benchmark indices ended up for the fourth consecutive week today, with both key indices gaining over 5% each from its close on Jan 20. The trend is likely to be up as the stocks are not giving up their gains of recent weeks. Bulls are not loosening their grip on the stock market and indices are unlikely to turn negative unless there are big outflows from foreign investors. Yesterday, the 51-stock Nifty 50 ended up 43.70 points or 0.5% at 8821.70 points, while the Sensex ended at 28468.75, up 167.48 points or 0.6%. Among the sector movers, the Nifty Pharma index gained 2.1%, followed by Nifty Bank, which rose 1.5%. The Nifty IT index ended down 1% on profit taking, but some are of the view that it could rise once again after Tata Consultancy Services details its share buyback plan Monday. Bank stocks are likely to stay choppy next week. The stock gained sharply today after the Reserve Bank of India Thursday lifted its ban on foreign investors buying into the stock. However, the central bank yesterday once again barred foreign investors from buying HDFC Bank stocks as their holding topped the 74% mark in less than a couple of hours of trading. Foreign investors are likely to have bought shares of HDFC Bank to the tune of $1 bln. Stocks of HDFC Bank touched a record high of 1,454 rupees, but ended up only 3.7% at 1,377.05 rupees. Stocks of Axis Bank hit a three-month high of 504 rupees after CLSA Asia Pacific Markets said a possible merger with Kotak Mahindra Bank will be positive. However, Axis Bank closed down 0.8% at 489.10 rupees, while Kotak Mahindra Bank, after also hitting a three-month high of 811 rupees, closed up 0.5% at 796.50 rupees. So yesterday's gain in the bank stocks can be termed as technical, pushed mainly by the heavy buying by foreign investors in HDFC Bank shares, and the gains (in bank shares) seen yesterday may not sustain next week. However, pharmaceutical stocks may see some more gains as investors will once again look for bargain buys in the sector on positive news. Stocks of Cadila Healthcare continued to rise and ended up 4.8% after it got approval from the US Food and Drug Administration for generic fluconazole tablets and clobetasol propionate spray. Cigarette makers' stocks are likely to be in focus next week as the Goods and Services Tax Council may discuss categorisation of tobacco products on Saturday, and decide to keep these products under the highest slab of 28% plus cess.