Rupeedesk Consultancy

Indian Market Weekly Outlook & Sectorwise Stocks Outlook for the Week - .25.Jul.2016 to 29.Jul.2016

Indian Markets Outlook for the week – 25.Jul.2016 to 29.Jul.2016
(Stock indices are set to continue their underlying positive bias next week) )


Stock indices are set to continue their underlying positive bias next week, in the backdrop of quarterly corporate earnings and expiry of the July futures and options derivatives contracts.
Nifty 50 companies announcing their earnings for Apr-Jun next week include ACC, Ambuja Cements, Asian Paints, Bajaj Auto, Bharti Airtel, Bharti Infratel, Dr Reddy's Laboratories, Eicher Motors, Housing Development Finance Corp, ICICI Bank, Larsen & Toubro, Maruti Suzuki India, YES Bank, and Zee Entertainment Enterprises.

While ICICI Bank's earnings will be tracked for its asset quality and credit growth, L&T's order inflow growth, guidance and operating margins will also be under investors' radar.

The week in the run-up to the expiry of the July futures and options series will keep the movement
volatile, as traders roll over positions from the current derivatives series to the August series. During
the week, the Nifty 50 is seen moving within a range of 8420-8620 points. Today, it ended at 8451.20, up 31.10 points or 0.4% from the previous close. The Sensex closed at 27803.24, up 92.72 points or 0.3% from the previous close.

So far this month, the index has risen 3%, as disappointment on the earnings of information
technology majors has been offset by strength in global markets. Globally, equities have been buoyant on hope that major central banks will maintain accommodative monetary policies in the wake of the UK's decision to exit the European Union. The US Federal Open Market Committee and Bank of Japan are scheduled to meet next week to detail their monetary policies.

On Monday, stocks of Axis Bank will be in focus, as the lender's asset quality deteriorated in Apr-Jun, and net profit came in at 15.5 bln rupees, sharply below the estimated 19.9 bln rupees. The fall,
however, may not be very sharp, as the stock has already factored in weak earnings, ending in the
red for the fourth consecutive session yesterday.

Vedanta and Cairn India will also be in focus on Monday. The former, in an apparent bid to sweeten
the deal for the latter's minority shareholders, approved revised terms for the merger of Cairn India
with Vedanta.

Vedanta said that apart from getting one equity share in the merged entity, Cairn India's minority
shareholders will also get four redeemable preference shares of 10-rupee face value "with a coupon of
7.5% and tenure of 18 months from issuance".Cairn India's minority shareholders will also get an
implied premium of 20% to the one-month volume weighted average price of a Cairn India share.
The deal will see shares of both companies react positively. It is likely to assuage Cairn India's
minority shareholders, while Vedanta stands to benefit from the merger on account of Cairn's cash on
books. )