Rupeedesk Consultancy

Indian Market Weekly Outlook & Sectorwise Stocks Outlook for the Week - 9.May.2016 to 13.May.2016

Global markets are likely to dictate the trend for benchmark share indices next week, with the Jan-   Mar earnings of key companies likely to keep the action stock-specific. The underlying bias for equities is positive after the indices declined significantly this week. This week, the index declined 1.5% to 7733.45 points. Yesterday, the Nifty 50 ended flat in a volatile session, as investors cautiously awaited data on US non-farm payrolls for April. The S&P 500 futures extended losses and were down 0.5%, against 0.3% earlier, as lower additions of non-farm jobs stoked fear that the US economy may not be in the pink of health. The Dow Jones Industrial Average futures were also  down 0.5%.

In April, 160,000 non-farm jobs were added, lower than the 215,000 added in March. At 5.0%, the
unemployment rate was unchanged from the previous month. In India, market participants remain
positive about the economy, even while keeping an eye on weak global markets. The recent correction in equities has led investors to reallocate their portfolios, and they are going long on the banking sector. Market participants are also positive about the automobile sector, especially after most companies reported robust sales numbers for April.


Corporate earnings for Jan-Mar will be a crucial factor for markets next week, with five Nifty 50
constituents--Hindustan Unilever, Zee Entertainment Enterprises, Asian Paints, Kotak Mahindra Bank and Dr Reddy's Laboratories--reporting their earnings. Grasim Industries will report its earnings on Saturday. Index heavyweight Hindustan Unilever is expected to report a 1% fall in quarterly net profit at 10.1 bln rupees on Monday. Yesterday, the stock ended up 0.4% at 853.40 rupees. Stocks of Dr Reddy's Laboratories, which will report its earnings on Thursday, are seen trading with a negative bias. Yesterday, the stock ended down 2.2% at 2,866.30 rupees. Other companies reporting their Jan-Mar earnings next week are SRF, Apollo Tyres, Chambal Fertilisers & Chemicals, Havells India, Glenmark Pharmaceuticals, and Nestle India.