'Focus shifts to global mkts, reforms and RBI policy: Kotak Securities

The BSE Sensex showed volatility during the week (Nov 10, 2014- Nov 14, 2014) on day-to-day basis. On Monday, the benchmark index opened at 27,919.45 and touched a low of 27,764.75 only to move up and reach the high of 28,027.96 points, resulting in difference of 263 points between high and low points.

The benchmark index managed to close the week above the psychological 28,000 level on Friday, November 14, and ended at 28,046.66 registering gains of 106.02 point during the day.

President-retail distribution, Religare Securities says, "In line with expectations, the domestic bourses remained range-bound on Friday and closed marginally in the green."

Manglik believes the situation mainly improved in the later half after India's main inflation index, based on monthly WPI, stood at 1.77% for the month of October as compared to 2.38% in the previous month.

Among the A group companies, the top gainers during the week were Amtek Auto (21.70%); Rajesh Exports (17.92%); ING Vysya Bank ( 17.76%); Colgate Palmolive ( 17.67%) and Ashok Leyland (17.20%). The top losers were Kailash Auto Fin (-25.93%); Engineers India (-17.89%); Bajaj Electrical (-17.43%); Balkrishna Industries (-14.22%); and Escorts (-14.03%).

The FIIs were buyers in the capital market segment, bought shares worth Rs 690.61 crore on 13 November.

On the other hand, the Domestic Institutional Investors (DIIs) were net sellers on 13 November, sold shares worth Rs 738.24 crore as per the provisional data from the stock exchanges.

"We reiterate our positive view on markets and believe that this consolidation would end with an upside breakout in the coming sessions. Meanwhile, we would advice the stock-specific approach and avoid contrarian trades," says Manglik.

Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities says, "With the results season coming to an end, the focus would again shift to global markets, progress on reforms and RBI monetary policy. Investors are advised to stay invested in companies that are run by credible management."

Sharing his views Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services says, "The market is entering a phase of event risk from Winter Session and RBI meet. The Parliament session will elaborate what should be expected from reforms and the coming Budget. While RBI meet on monetary policy in December will define the possibility to lower rate in the closer time. Also, Q2FY15 results are largely in line, not providing any possibility to increase earnings for FY15E. These factors could make market to consolidate in the near term while medium term trend will depend on event outcome. Based on the current movement, market believes that outcome will be positive from the next Parliament session."

Meanwhile on the international front, European markets rose on the account of strong data from Germany and France.

German GDP rose 0.1% in September quarter after shrinking 0.1% in the previous quarter. The French economy grew 0.3% after contracting 0.1% in the April- June quarter. The US index futures were also trading with a positive note.