Indian Markets Outlook: 23-27.07.2012

[rupeedesk]

Indian Markets Outlook: 23-27.07.2012

               

 The outcome of the presidential poll on Sunday will lend cues to local equities on Monday. Market may get some respite from Reliance Industries' better-than-expected Apr-Jun earnings. Post market hours yesterday, RIL reported a net profit of 44.7 bln rupees for the first quarter due to reversal of some deferred tax provisioning done in earlier quarters. What came as a major surprise was the $7.6 per barrel gross refining margins.  The rise in margins was on the back of better product mix. Another positive element in the earnings was the 17% sequential fall in RIL's other income during the quarter to 19 bln rupees. Petrochemicals contribute 25-30% to RIL's EBIT (earnings before interest, tax), so a fall in margins in that segment is a bit of a worry. In the broad market, trade is expected to be largely rangebound as several companies are slated to report quarterly earnings and due to the expiry of the July futures contract Thursday.

                  Rollovers may not be on the higher side this time as traders would prefer to let their positions expire on caution ahead of the Reserve Bank of India's first quarter monetary policy review on Jul 31. The National Stock Exchange's 50-share Nifty to trade in the 5150-5300 range next week. UltraTech Cement stocks may rise as the company reported a higher-than-expected growth in net profit and sales in Apr-Jun. The country's largest cement maker reported net profit of 7.8 bln rupees, up 14.7% on year. Crompton Greaves stocks are likely to fall on Monday as the company posted a lower than expected consolidated net profit of 859 mln rupees for the first quarter. 

                  Nifty companies that will detail June quarter earnings next week are Cairn India, Hindustan Unilever, Larsen & Toubro, Jindal Steel & Power, Sesa Goa, ACC, HCL Technologies, Power Grid Corp of India, Ambuja Cements, ITC, ICICI Bank, Wipro, Bharat Heavy Electricals, NTPC, Punjab National Bank, and Maruti Suzuki India. L&T is seen posting a 9% rise in net profit on a 16% revenue growth in Apr-Jun. The engineering major's net profit is seen at 8.15 bln rupees and net sales at 109.2 bln rupees. But more than the earnings, the street will focus on the order inflows seen during the reporting quarter and whether the management will revises its revenue and order inflow guidance for 2012-13 (Apr-Mar). Wipro that will detail its earnings on Tuesday is seen reporting a 10% sequential and 22% on-year growth in its Apr-Jun consolidated net profit to 16.24 bln rupees mainly on foreign exchange gains.

By RUPEE DESK

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