Market Perspective - January 5, 2013 - Eastern Financiers

Following a week of healthy gains amid assenting sets of episodes in the domestic economy as well as on the global arena, markets next week is anticipated to be range bound amid instigation of the third quarter earnings and data on Industrial Production along with other sets of imperative affairs. The sustained inflow of Foreign funds to the domestic economy may however endure to offer respite to the equity markets.

The near term trend of the market shall primarily be vogued by the third quarter earnings of India Inc. The earnings season shall start with the IT bellwether, Infosys Technologies that is set to declare its numbers on Friday, 11th January. However, weak IT spending may lead the IT companies to report muted performance in the December 2012 quarter.

Investors will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and the next year.

On the macro space, the vacillating data on Industrial Production for the month of November 2012 is due on Friday, 11th January that surprised the markets last month with eye-popping growth of 8.2% during October 2012 equated to decline of 0.7% in September 2012.

Telecom stocks could be in focus as an Indian ministerial panel is due to meet on Monday to discuss the government's plans for the next airwave auction.

Global markets that towered this week on healthy set of economic releases and the fiscal cliff bill, shall next week eye out for yet another set of economic releases. Asian markets will on Monday react to the influential US nonfarm payrolls data for December 2012 which aided the surge in US and the European markets on the last day of the week. Among key global events, the Bank of England and the European Commercial Bank are set to meet next week. Key economic releases includes the European Union Retail Sales, European Union GDP, US Jobless Claims, US International Trade and US Import & Exports among others.

Source : Equity Bulls

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