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Stock-specific action to dictate markets this week: Analysts

Last Updated: Sunday, November 4, 2012 - 11:01

New Delhi: Equity markets are likely to see stock-specific action this week in view of earnings from a slew of blue chips, including Bharti Airtel, Tata Motors and SBI, amid volatile trading due to global events, analysts say.

Major corporate result announcements this week include Cipla, Tata Power, Reliance Infrastructure, Hindalco, Bharti Airtel, Tata Motors, Sun Pharmaceuticals Industries, ONGC, Ranbaxy, Tata Steel, Jindal Steel & Power, Coal India and SBI.

The BSE benchmark Sensex bounced back by 130 points to settle last week at 18,755.45 in view of fresh buying in mainly in consumer durable, auto, pharma, IT and metal pack.

"Markets may open lower on Monday as US stocks closed lower on Friday. Also after a spectacular rally on Dalal Street on Friday, some correction will be seen," CNI Research CMD Kishor Ostwal said.

Investors will also track the US presidential elections, which is scheduled on Tuesday, experts said.

Post that, reforms may take the centre-stage again with developments on several important bills for which parliamentary approval is needed is expected to be taken up in the winter session, said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.

Analysts also said that market may see listless trading amid bouts of volatility this week.

According to Nischal Maheshwari of Edelweiss Research: "RBI's failure to complement government's reform measures via rate action has partly eroded the positive momentum that had been building over recent months.

"Given the disappointment on this front and in the absence of other positive triggers, we expect the market to be listless and drift to a narrow trading range of 5,450-5,650 (NSE Nifty) in the near-term."

"However, we do not foresee much downside on earnings here on and this will firmly support the market at the lower end of the range," he added.

The RBI in its latest policy review held on to policy rates and also hiked provisioning norms and lowered growth projection. Its slashing CRR by 25 basis points was on expected lines but, the decision to keep policy rates unchanged seems to have disappointed markets given recent government actions, an expert said.

"This week, for the Nifty 5,625 level on the downside and 5,725 level on the upside shall be deciding levels. If it goes above 5,725, further buying momentum is likely for a target of 5,750-5,850. Quarterly results will also continue to be in focus in coming sessions," Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio said.


First Published: Sunday, November 4, 2012 - 11:01
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