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Week Ahead: Market likely to remain choppy amid bearish sentiment

Source : SIFY
Last Updated: Sun, Apr 07, 2013 05:27 hrs
Commuters walk past the BSE building in Mumbai

The trend is likely to remain bearish on the Indian bourses next week, due largely to concerns about near term economic outlook. With the latest report on the country's services sector activity turning out to be quite dismal, stocks tumbled during the later part of the previous week, and with no great signs of an economic recovery in sight, investors are unlikely to go in for any strong buying for the short term.

Though some bargain hunting is not ruled out, growth concerns and caution ahead of quarterly results may render the market sluggish for most part of the coming week.

The automobile sector may struggle to find support, if the latest data on sales is any indication. Realty stocks may find some support now and then, but a strong recovery will remain elusive. Pharmaceuticals stocks appear a safe bet for now, and quite a few big ones from this space are likely to see some good spells in positive territory over the next few days.

Besides growth concerns, political uncertainty might also prompt investors to stay on the sidelines. Foreign institutional investors were net sellers on a few sessions last week, and this does not augur well.

Quarterly results will be the key to market's fortunes in the near term. IT bellwether Infosys will report its earnings on Friday, 12 April 2013.

On the economic front, the data on industrial production for February 2013 will be released on Friday (12 April). The combined consumer price index for urban and rural India for March will also be released on the same day.

Disappointing jobs data dragged down stocks on Wall Street on Friday, and major European markets too ended on a weak note. This could set up a subdued start for most of the markets, including the Indian bourses, in the Asian region on Monday.

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