Week In Restrospect - November 17, 2012 - Microsec

Indian markets wrapped the week on a lower note with Sensex and Nifty losing 2% each. However, there was stock-specific action throughout the week with few stocks like Tata Coffee and UB group companies doing very well.

On domestic front, India's IIP data contracted to -0.4 % due to huge contraction in capital goods and consumer durables.

India's WPI inflation came at 7.45% while CPI inflation is at 9.75%. Augusts' WPI inflation data has been revised by 46 bps from 7.55 percent to 8.01percent.

The winter session of parliament beings from November 22nd, 2012 hence we may witness great levels of volatility in the market going forward. To top it, weakness in global markets led by European and US market due to recession in Europe and fiscal cliff in the US may make the markets trade even more volatile. In this scenario we advise investors to BUY on declines of Nifty around 5450 levels in heavyweights like Hindustan Lever, L&T, Bajaj Auto, LICHF. However, Bharti Airtel, Glaxosmithkline Consumer Healthcare may be a better buy at CMP along with some midcap names like Cera Ceramics, Blue Star, Maharashtra Seamless Ltd., IL&FS Transportation, Pidilite, Mcleod Russel.

Source : Equity Bulls

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