Poorer than expected IIP number to keep Indian Markets subdued - Microsec

As expected, Indian markets continue to exhibit uncertainties in direction. A poorer than expected IIP number for the month of November 2013 at -2.1 against general expectations of a growth of ~0.80 percent may contain gains in industrials and core sectors. However, it also sends the signal that RBI may keep interest rates unchanged later this month against earlier expectations of a hike on deteriorating IIP.

Also, the CPI and WPI for the month of Dec-13 to be released this week are expected at 10% and 7%, below previous month's data of 11.24% and 7.52%. The unemployment rate in US has fallen to 6.70 percent, which signals increased pace of US bond purchases tapering, but a change in non-farm payroll fell to 74000 against 197000 which may negate the impact.

Important results scheduled during the week are RIL, TCS, ITC, Axis Bank, HDFC Bank, Wipro HCL Tech, Hero Motocorp, Bajaj Auto, Exide Industries et al. Rate sensitive stocks may remain positive this week, prominent among them may be SBI, ICICI Bank, Bajaj Auto, Maruti and M&M.

Source : Equity Bulls

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