Markets likely to remain range-bound - Eastern Financiers

Markets next week are likely to remain range-bound as we approach the fag-end of the third Quarter earnings and with the Union and the Railway budget set to come the week after, investors are expected to remain cautious with their exposure to the market. Also, the participants will keep a close eye on the Budget Session of parliament that begins on Feb-21.

Corporate earnings so far have rather been a mixed bag. While there have been hits and misses at the sectoral or company level, the overall results are just about satisfactory. Markets are unlikely to price-in an aggressive recovery in earnings but the general mood has grown optimistic and it is highly possible that the corporate earnings might either have already bottomed out or is likely to do so in the next couple of quarters.

The third quarter results for FY13 would continue trickling in as we come near the fag-end of the earnings season. Some of the Corporates that would be announcing their December Quarter results include GlaxoSmithKline Pharmaceuticals Limited, Thomas Cook (India) Limited, ABB Limited, Gujarat Gas Company Limited, Gujarat Pipavav Port Limited, KSB Pumps Limited, etc.

FII inflows and the movement of INR would also be keenly watched out next week. FIIs continued to be net buyers of Indian Equities this week, echoing their positive outlook on Indian markets. In fact, FII holding in BSE-100 companies have soared at an all-time high in Q3FY13 and with the Reserve Bank of India beginning the easing of interest rates and the government embarking on reforms, FII flows are expected to be robust, going ahead.

British Prime Minister David Cameron is visiting India next week with key cabinet ministers and a high-powered business delegation, to strengthen trade and investment ties. This will be his second visit to India since becoming PM in 2010. Cameron will be accompanied by the ministers of trade and commerce, defence and environment, among others. A big business delegation accompanying him will have the heads of several conglomerates, from the retail to infrastructure sectors. Any favorable outcomes from the visit could see sector specific activities in the market.

On Sectoral Front, the Oil marketing companies would see renewed trading interest next week as they raised petrol prices by Rs 1.50 a litre and diesel by 45 paise per litre, excluding local taxes.

Source : Equity Bulls

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