Stocks pause for breath, eye new year cues
Markets are expected to end 2014 in a flat mood, lazing-off in the holiday season while looking for fresh domestic and global cues after a heady year in which the key indices shot up on news and hopes of economic revival in India and elsewhere.
The previous holiday-shortened and volatile week saw the markets drop points, with the Sensex losing 130 points and the Nifty correcting close to 25 points. Shares dropped in December, in a year that has seen both the indices gain more that 30%.
According to Religare Securities, the overall uptrend is still intact and markets will keep a watch on rupee and crude oil. Automobile and cement stocks will be in focus as companies will report their monthly sales figures in the coming week.
“Overall, the holiday mood is prevailing and FII flows will not be very strong,” Paras Bothra, vice president-equity research, Ashika Stock Broking told HT. Bothra added that for the month of January, the trend looks to be positive but that no big rally is expected before the budget.
Kamlesh Rao, CEO, Kotak Securities, felt that the outlook for 2015 is optimistic. “Markets have witnessed a buoyant trend that indicates better profit prospects for 2015. This seems to be the start of a golden era for the markets and economy,” he said.
“The budget session will be a major factor in deciding the trend,” said Bothra. “We expect money to pour in to the markets heavily, this year again.”