*India Markets Outlook for the week(04 - 08.06.2012)* The bias for key stock indices is likely to remain negative next week on continued risk aversion towards emerging markets, and as the National Stock Exchange's 50-scrip Nifty on Friday closed below its key support of 4850. Global equities saw a sell off as China's purchasing manager's index fell more than expected to 50.4 in May from 53.3 in April. A rise in US jobless claims by 10,000 to 383,000 in the week ended May 26 also weighed on sentiment. Back home, shares also declined on fears the Reserve Bank of India may not be in a hurry to cut interest rates, despite India's faltering economic growth, as high current account deficit and weak currency pose a risk to inflation. Latest data from the Central Statistics Office showed India's gross domestic product growth slowed to 6.5% in 2011-12 (Apr-Mar) from 8.4% a year ago.
Market participants said bearish sentiment in the market is also reflected in the low rollovers to the June derivatives series of the Nifty. Rollovers to the Nifty June series stood at 58.86%, lower than a three-month average of 65.93%. Market-wide rollovers at 82.77% were slightly higher than the three-month average of 81.66%. We expect the Nifty to trade in a range of 4800-5000 next week, though they said any negative cues from overseas markets could drag the Nifty below the 4700 level. Overseas markets will lend cues to investors on Monday. US index futures pointed to a weak open on the Wall Street as investors awaited non-farm payrolls data for May. Among sectors, banks and metals may remain weak due to a build up of short positions. However, any positive developments would first lead to short covering in these two sectors. Shares of Indraprastha Gas, which ended up 28.9% at 249.15 rupees on friday, may extend their gains on Monday. The stock surged after the Delhi High Court ruled in favour of Indraprastha Gas in a case against the Petroleum and Natural Gas Regulatory Board on tariffs. On Apr 10, the regulator had directed Indraprastha Gas to refund the excess network tariff the company had charged since 2008-09 (Apr-Mar). Following this,the company had challenged the "constitutionality and legality" of the powers of the regulator to fix tariffs. The sentiment for ACC and Ambuja Cements will be dictated by the companies' sales data for May. Post market hours, ACC reported cement sales at 2.05 mln tn in May as against 1.99 mln tn a year ago. Ambuja's sales rose to 1.93 mln tn in May from 1.73 mln tn a year ago. Hero MotoCorp's shares will also take cues from the company's sales. In May, total despatches stood at 556,644 vehicles, up 11.3% on year By RUPEE DESK [email protected] -- 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.
