Market outlook for August
July was another eventful month with the major event of the maiden Union budget being the focus of attention as post the landslide victory of the NDA Gov, expectations were running high. Besides the corporate results were a mixed pack and some sectors like capital goods and banks which had run up quite a bit showed some sharp profit-taking. The FMCG pack was the surprise element which threw up some positive surprises and cues of where money could flow in the near term. IT was again a mixed pack though preference was seen at lower levels keeping an eye on the gradual weakening of the rupee.
The month of August begins with some global tremors with the ongoing Gaza crisis not showing any signs of abating. Besides some negative news of default from Argentina spooked global markets.
Another major cause of concern was the poor rainfall seen in the month of June which however was largely made up in the month of July. However, by and large worries will remain as the stubborn inflation refuses to ease which could pave the way for some much expected rate cut from RBI which incidentally is meeting on Aug 5 to review the credit policy though largely expectations are that it will be status quo.
The last 3 months May – July has been highly eventful with the Lok Sabha elections followed by the Union Budget and also the corporate results providing exciting times in the stock market. For the current month broadly some rebalancing could be expected taking cues from the recent results announced. Broadly Nifty could see some range bound trading of 7500-7750.
Equity Research Desk
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