The bias for equities continues to remain positive for the week ahead, as market
participants, particularly foreign institutional investors, continue to bet on the Narendra
Modi government. However, this does not rule out consolidation, as investors may
continue booking partial profits after the recent rally. The benchmark indices ended in the
red for the second consecutive session as investors continued to take partial profits.
Global markets will continue to be watched. Later, US non-farm payroll data for August
will be detailed. The global market trend, depending on the data, is likely to be an
indication for the start of Monday's session. Also, market will keep an eye for further
developments pertaining to Russia and Ukraine.
Back home, on Tuesday, the Supreme Court will hear the coal block allocation case. On
Monday, the apex court had began the hearing on the fate of coal blocks awarded since
1993 and observed that non-operational mines should be cancelled.
The hearing will keep shares of metal and power companies in focus, particularly Jindal
Steel and Power, Hindalco Industries, and Sesa Sterlite. Towards the fag end of the week,
investor attention will shift to Indian economic data. On Friday, the Central Statistics
Office will detail the Index of Industrial Production data for July, and the Consumer Price
Index based inflation data for August. Both of these data points, to be detailed post
market hours, are pivotal as they will give an insight about the likely action on interest
rates. The Reserve Bank of India is scheduled to detail its fourth bi-monthly monetary
policy review on Sep 30.
Shares in the mid and small-cap space are likely to attract further buying, according to
market players. Axis Capital is positive on Alstom T&D, Britannia Industries, CMC, DB
Corp, Finolex Industries, Gateway Distriparks, Info Edge, Shoppers Stop and Tube
Investments of India.
Market participants are mixed on real estate major DLF, which has seen sharp movement
in the past two sessions. Some advise buying the stock at current levels, while others expect to see correction.
( www.rupeedesk.in )
