Week ahead: Global cues, Auto sales figures may set the trend

Last Updated: Sat, Jan 02, 2010 05:14 hrs

After a splendid rally in Year 2009, the market will wake up early for trading in the New Year. Though the earlier proposal to extend trading hours till 5 p.m., has been deferred for now, the market will now open at 9 O' Clock in the morning, 55 minutes earlier than the previous starting time.

Investors, besides gearing up to start early, will be looking for some crucial reports in coming weeks. While automobile and cement manufacturers will release the sales and shipments figures for December 2009, during the early part of the coming week, several top notch companies will be reporting their third quarter earnings in the next fortnight.

JSW Energy will be making its debut on the bourses on Monday. The issue did not evoke a big response and it remains to be seen how it fares in early days at the ring. If the overall mood remains bullish, then there is a possibility of the stock gaining some ground.

The negative close on Wall Street on Friday may trigger a round of selling in Asian markets on Monday. However, the downside may turn out to be limited if automobile firms reel out impressive sales figures. A section of investors may prefer to tread cautiously ahead of quarterly results. Stock and sector specific activity may well be the order of the day.

Volume of business was quite thin over the past few days, and understandably so, as Christmas and yearend holidays kept investors away at the sidelines. There may not be an immediate surge in volumes despite extended trading hours, but activity is likely to pick up once quarterly results start pouring in.

As has been the case for the past several months, global factors will continue to have a significant impact on the market, although the Indian economy is expected to fare a lot better than its peers. Inflation is a concern and there are expectations that the central bank may well resort to some monetary tightening measures in the near future.

Besides auto and cement stocks, steel stocks are the one to look out for in the coming week. With prices of steel products likely to see a hike, some hectic action is expected in the sector. Information technology stocks will be in focus ahead of quarterly numbers.

The Sensex rose as much as 81% last year, with scores of stocks recording hefty gains. It appears the market has already discounted third quarter results in some cases and even the performance till March 2010 in a few others. So, there is a possibility of a retreat of sorts during the first few sessions in the new year.

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