Weekly Market Wrap January 10, 2015 :: HDFC Securities

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Outlook for Week Ahead January 10, 2015
Trend in global markets, Q3 results of India Inc, domestic and global macro economic data,
investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude
oil price movement will dictate the trend on the bourses in the forthcoming week.
The Q3 December 2014 earnings season has just begun. Companies who would be announcing their
results next week include IndusInd Bank, Yes Bank, Bajaj Auto, TCS, Axis Bank and Wipro.
On the macro front, industrial production growth is expected to remain muted in November 2014
and consumer price inflation is likely to accelerate in December 2014. Industrial production is seen
rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by
Capital Market. Other key data to be announced next week include IIP, CPI and WPI.
From last 3 sessions Nifty is making higher top higher bottom formation. If in coming session Nifty
sustains above 8240 level then traders could expect Nifty to trade up to 8325 level followed by 8375.
If Nifty trades & sustains below 8240 level then traders could expect down move up to 8200
followed by 8125 level.
The Week Gone By January 10, 2015
Benchmark equity indices gained 2% in the last two sessions but did little to reduce deep losses
encountered earlier this week, leading Indian equities to post their biggest weekly loss in almost a
month. The Sensex lost almost 1.6% or 430 points from last week’s close to end at 27,458. The Nifty
declined 1.3% or 111 points to settle at 8,285. The fall was in sync with the weak sentiment in global
equities arising out of multi-year fall in crude oil prices and speculation of Greece’s exit from the
euro zone. Broader markets were better performers in relation to benchmark indices. The mid cap
and small cap indices each ended the week with nearly 1%-fall. Shares of metals, banking, capital
goods, and power companies featured among the top losers this week.
Key Highlights during the week:
 The manufacturing and services sectors in India expanded at a faster pace than those in China in
December, even as emerging market growth remained lacklustre, an HSBC survey said. The HSBC
Emerging Markets Index (EMI), a monthly indicator derived from PMI surveys, rose to a threemonth
high of 51.7, from November’s six-month low of 51.2, but still signalled only a modest
rate of expansion.
 India is not planning to impose any further curbs on gold imports as the current account deficit is
under control, Trade Secretary Rajeev Kher said.
 India Inc’s revenue growth in the third quarter ended December 2014 will fall to 7% (year-onyear)
due to slow pace of investment, subdued growth in export-oriented sectors and soft
commodity prices, according to CRISIL Research.
 The ongoing slide in the price of crude oil might force oil companies globally to lower their
spending by up to 40 per cent in 2015, credit rating agency Moody’s has said. Exploration and
production (E&P) companies could be the first to be hit, while oilfield services (OFS) and
midstream energy operators might feel the knock-on effects of reduced capital spending in the
E&P sector.
 The government expects the total proceeds from sale of 800-MHz, 900-MHz and 1,800-MHz
spectrum through an auction in February to be Rs 64,000 crore — much higher than the target of
Rs 43,065 crore set in the Union Budget for 2014-15 — a draft Cabinet note is learnt to have said.
 India’s coal imports surged 19 per cent last year to 210.55 million tonnes (MT) on demand from
power sector, but the ongoing coal industry strike is unlikely to cause a further spurt, according
to online marketplace mjunction. India had imported 176.97 MT of coal in 2013. During the first
nine months of current fiscal, imports of coal stood at 167.60 MT, up 20.89 per cent from 138.64
MT imported during the corresponding period of the last fiscal.

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