Investors should look out for movement in realty, IT, auto and banking sectors in the week ahead
The Nifty50 index ended the week with 1.50 per cent gain at 15923.40 and the BSE Sensex ended with a 1.40 per cent gain at 53140.06, which reflect that investors have strong confidence in Indian markets. Also, the realty sector moved upwards by 7.1 per cent on the broader Nifty Index.
In the coming week, the Indian markets may add another 100 points but investors should keep a close watch on global markets, Covid cases, crude oil supply and the US yield rates.
The key results of HCL Technologies, Bajaj Auto, Asian Paints, Hindustan Unilever and Reliance Industries are scheduled for the week beginning Monday. The earnings of these companies can drive the markets next week.
The first quarter results of Hindustan Zinc on July 22 and JSW Steel Ltd on July 23 will be eyed. On one hand, Hindustan Zinc sales are expected to be down due to the Covid-19 impact, on the other, JSW Steel might benefit from higher steel prices.
Results of Yes Bank and Federal Bank are due next week. The investors will see the quality of assets and earrings to get further cues. The sector has shown upward movement of around 1.76 per cent and Bank Nifty ended at 35752. So, if it breaks the 36,000 level and sustains above, it can fuel the next leg of rally. Investors can invest in quality stocks like HDFC and ICICI Bank.
With major companies having announced their results, except HCL Tech which will be announcing its earnings on Monday, there are no major cues. With the future demand guidance being good from these companies, the positive outlook will continue. The investor can take fresh position in a stock like Infosys and Wipro.
The S&P BSE Realty index hit an over 10-year high level last week and the sector moved almost 8.6 per cent, which is a clear sign that the sector is poised for the organic growth. The main reason behind that is a slowdown in Covid case decline in the unsold inventory and jump in the sale of residential property in June. In the last 15 months due to the pandemic, there was disruption in this sector but now demand for residentials segment is picking up. In the coming week, investors can watch this sector closely and if there is no negative news then they can take long position seeing the past week data and trend.
In the coming week, the sectors which investor can watch out for include realty, IT sector, auto and banking.
The author is Assistant Director at ITM B-School
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