Indian Markets Outlook for the week (28.05.2012 - 01.06.2012) Domestic equities are expected to be volatile next week as traders are likely to roll over positions to the June derivatives series from the May series ahead of the latter's expiry Thursday. We expect the Nifty May contract to expire above 4800. Resistance for the Nifty is seen at 4980 points but some believe short covering before the expiry of the May contract could help the index scale 5000 points and inch close to 5050. Also, local indices will take cues from overseas equities next week. Monday, the US market is closed for Memorial Day, and the South Korean market for Buddha's Birthday. Jan-Mar earnings of companies will drive specific stocks. Coal India, Indian Oil Corp, Aurobindo Pharma, NMDC, Oil India, GMR Infrastructure, Hindustan Petroleum Corp, Lanco Infratech, Oil and Natural Gas Corp, Power Grid Corp Of India, Steel Authority of India, Sun Pharmaceutical Industries, GAIL India, Jaiprakash Associates, and Tata Motors are among the companies detailing their quarterly earnings next week.
Hindustan Petroleum's bottomline is expected to rise to 40 bln rupees in the quarter from 11.23 bln rupees a year ago. However, there could be some weakness in stocks of state-owned oil marketing companies due to reports the government has deferred a decision on raising the prices of diesel, liquefied petroleum gas, and kerosene. With 16 ANDA (abbreviated new drug applications) and one NDA (new drug application) in (the) pipeline, we are concerned on the prospect of growth in Taro. We believe that the company has reached its potential of sales with the existing portfolio and do not expect significant rise with its current pipeline. This could impact Sun Pharma's consolidated revenues growth in near to medium term as Taro contributes more than 30% of sales and more than 40% of EBITDA (earnings before interest, tax, depreciation, and amortisation). Better realisations, higher volumes, and low input costs are likely to help Steel Authority of India post a 115% sequential jump in Jan-Mar net profit to 13.62 bln rupees. Later in the week, stocks of automobile companies will take cues from their May vehicle sales. -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
