OUTLOOK OF THE
indices started the week on optimistic note with report that India''s trade
deficit has narrowed in June and FIIs have invested nearly Rs.11000 crores in
the capital markets in the first two weeks of July but witnessed major selloff
on the very next day as traders remained concerned with private report that
suggested India''s Current Account Deficit (CAD) is likely to widen to 1.3% of
GDP in 2017 from 0.6% in 2016 and the industry body ASSOCHAM latest report that
the inflation outlook is expected to remain quite muted at least till festival
season of Durga Puja and Diwali. However, the indices recovered in later part
of the week as sentiments remained positive on the back of better than expected
earnings from Infosys, Reliance Industries and buy back and bonus announcement
from Wipro and RIL, respectively. This caused the indices to end with marginal
The BSE Sensex
and CNX Nifty closed the week with marginal gains of 8 points (0.03%) and 29
points (0.3%) at 32,029 and 9,915, respectively.
The Mid Cap
index ended the week with marginal loss of 0.01% and Small Cap index ended with
gain of 0.5%.
FIIs were net
buyers while DIIs were net sellers during the week.
IT and Metal sectors were major gainers with gains of 2.8%, 2.7% and 1.9%,
respectively. However, FMCG sector was major dragger to the major indices with
loss of 6.6%.
Sterlite Tech in Technology sector , Himachal Futuristic and Zee Enter. gained
17.2% and 7.8%, respectively, to end at Rs.16.74 and Rs.554.45.
In IT sector,
Mastek and Wipro gained 14.7% and 10.4%, respectively, to end at Rs.327.60 and
In Meal sector,
Coal India and Hindalco gained 4.7% and 4.3%, respectively, to end at Rs.262.25
The coming week is going to be very volatile with F&O series expiry
for the month of July. Investors will be eyeing the monsoon session of
parliament that may see introduction of some important bills. The finance
ministry is working on the capital infusion strategy for public sector banks
and market will await announcement in this regard. The market participants will
also be tracking monsoon update by India Meteorological Department (IMD) and
lots of important earnings during the week.
On the global front, the market participants will be eyeing important
FOMC Meeting Announcement on July 26.
We expect the major indices to trade with choppiness but positive bias.