Outlook for Week Ahead January 19, 2015 :: HDFC Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Outlook for Week Ahead January 19, 2015
Corporate earnings of India Inc. and outcome of monetary policy meeting of European Central Bank
scheduled this week will hold key triggers for domestic markets in the week ahead. Meanwhile,
investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude
oil price movement could dictate the trend on the bourses this week.
Key corporate earnings to watch for this week include HUL, Hindustan Zinc, Kotak Mahindra Bank,
ITC, Colgate-Palmolive, HCL Infosystem and Ultratech Cement.
With the Nifty continuing to surge higher, the underlying trend remains firmly up. Further upsides
are likely once the immediate resistances of 8,527 are cleared. Downside supports to watch for any
weakness are at 8,486.
The Week Gone By January 19, 2015
A surprise rate cut by the RBI last week provided a big boost for the stock markets and sent the key
indices soaring to nearly one-and-a-half months high on the back of robust gains in realty, banking
and auto segments. The benchmark S&P BSE Sensex vaulted by over 663 points to end at 1-1/2-
month high of 28,122. Similarly, the wide-based CNX Nifty of the NSE crossed 8,500-mark for the
first time after a month and ended at 8,514, a gain of 229 points, or 2.8%. The BSE Mid-Cap index
rose 207 points or 2% to settle at 10,633. The BSE Small-Cap index advanced 112 points or 1% to
settle at 11,310. Both these indices underperformed the Sensex.
Key Highlights during the week:
 The Index of Industrial Production (IIP) of India for the month of November was reported at 3.8%
versus (-) 4.2% in October. This is way above estimate of 2.7%.
 The cumulative industrial production growth for April-November 2014-15 now stands at 2.2 per
cent against 0.1 per cent in the corresponding period last year. The data, however, show
consumption spending remains low in the economy and did not pick up even in the festive
season.
 The Consumer Price Index (CPI) inflation in India for the month of December rose to 5%, driven
by higher food costs.
 Plunging global oil markets helped India post slower-than-expected wholesale price inflation in
December, raising hopes for an early cut in interest rates to help the economy out of its longest
phase of sub-par growth since the 1980s. The wholesale price index (WPI) rose 0.11 percent
year-on-year compared with a 0.6 percent jump forecast by economists in a Reuters poll.
Wholesale prices were unchanged in November.
 The Government has increased the excise duty on the two auto fuels by Rs.2 a litre. The price cut
and duty hike will erode the higher profit IndianOil, Hindustan Petroleum and Bharat Petroleum
have earned on petrol and diesel from the softening of crude prices. This is the fourth hike since
November, and the Government expects to get Rs.20,000 crore in the current fiscal year. Every
litre of non-branded petrol will now attract excise duty of Rs.8.95, while for branded petrol it will
be Rs.10.10 a litre. For non-branded and branded diesel, the new duty will be Rs.7.96 and
Rs.10.25 a litre.
 For the week ended January 9, India’s foreign exchange (forex) reserves rose by $236.4 million to
$319.47 billion. Foreign currency assets, which form a bulk of the forex reserves, went up $308.5
million in the reporting week to $294.84 billion. Gold Reserves remained unchanged at $19.37
billion. Country’s special drawing rights and reserve position in the International Monetary Fund
fell by $56.7 million and $15.4 million, respectively.

http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010800