Indian Equity Benchmarks extend losing streak - Fullerton Securities

Key Indian equity benchmarks extended losing streak for the second consecutive week with the Sensex and Nifty shedding 1.1% and 0.4%, respectively. Equities started the week on a bearish note amid continuous selling of foreign funds amid concerns over weak Q4FY'13 earnings. Further, escalating political uncertainty on worries over early elections continues to take a toll over the market sentiments.

As the week progressed, the market rebounded on sustained buying support from IT, technology and banking stocks. Moving ahead, volatility continued to persist throughout the week as key benchmark indices reversed mid weekly gains to end in a losses despite firm global cues as a poor start to the corporate earnings season and a sharp slowdown in industrial output growth rattled investors sentiments.

Weaker than expected Q4FY'13 earnings data and tepid revenue growth guidance for FY'14 of IT bellwether Infosys sent shockwaves to the entire IT sector. Sentiments rattled further after government data showed that India's industrial production growth declined 370 bps YoY and 180 bps MoM to 0.6% in Feb'13, signaling a slowdown in Asia's third biggest economy.

Slowdown in retail inflation to 10.39% in Mar'13 provided cushion to the broader market. Wholesale price index (WPI)-based inflation due to release on Monday and upcoming Q4FY'13 earnings from Reliance Industries, Wipro and HCL Technologies will decide the market fortune next week.

Source : Equity Bulls

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