The week ahead: Q2 numbers to lead the way ..by J Victor on October 10th, 2016
The benchmark indices – the Sensex and the Nifty ended the past week with marginal gains at 28,061 (up 195 points) and 8,698 (up 86 points) respectively. The indices have been moving in a sideways range for the last one month since there was too much of news flow from around the globe, coupled with geo political tensions and surprise 25 basis points rate cut by the RBI.
Moving ahead, the present geo political tensions are unlikely to have a lasting impact on the economy. Although is causing temporary problems in the short term, the medium term outlook of the market will not be affected. Progress in implementing the GST, good south west monsoons and the rate cut from RBI will keep boosting the investor sentiments.
Although the domestic facts remain quite positive, there is trouble brewing internationally with the fed’s interest rate hike decision. Interest rate if hiked can cause a global sell off. The upcoming US presidential election in November, the brexit timeline, exit of FIIs if interest rate is hiked etc are factors that may override the positive domestic sentiments.
For the week ahead, quarterly results from blue chips – starting with TCS on October 13 and Infosys on October 14 will kick off the next round of cherry picking in stock markets. Other events include release of data on IIP for August on Monday, CPI for September on Thursday and WPI data on Friday.
For the week ahead, we expect the markets to trade in a range of 27600-28600 for the Sensex and 8500-8800 for the Nifty. The markets will be closed for Dussehra on Tuesday and for Muharram on Wednesday.
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