Which Sectors are expected to perform better as compare to Index?

Key benchmark indices Nifty & Sensex rallied 2.7-2.45 percent during the week as investors cheered the improved macro-economic data like inflation & decent growth in merchandise export in June and the RBI norms that will help infrastructure firms and affordable housing projects get cheaper loans from banks.

Last week, S&P BSE Sensex gained 617.21 points or 2.46% to 25,641.60 while CNX Nifty rose 204.30 points or 2.73% to 7663.90 while Mid-Cap Index underperform the index and Small –Cap Index outperformed index with gain of 1.32% and 5.08% respectively.

The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 7.31% in June 2014, from 8.28% in May 2014.  India's merchandise exports jumped 10.22% to $26.48 billion in June 2014 over June 2013 and Imports rose 8.33% to $38.24 billion in June 2014 over June 2013. The trade deficit stood at $11.76 billion in June 2014, which was higher than trade deficit of $11.28 billion in June 2013.

Going forward in absence of any major macroeconomic data FIIs investment trend, progress of monsoon, trend in global markets and next batch of Q1FY2014-15 earnings will dictate near term trend of Indian bourses. Among prominent results, RIL, UltraTech Cement, HDFC, HDFC Bank, Idea Cellular, Asian Paints, Axis Bank, Cairn India, Wipro, ACC, Ambuja Cements & Punjab National Bank will announce their April-June 2014 results in next week.  Next week Metal stocks would be in focus as Markit Economics will announce China’s PMI for July’14. 

In short term Nifty is seen moving in a range of 7550-7750 points while sectors like IT, Banking (Pvt.), Metal, Insurance & Automobile are expected to perform better as compare to Index.

Index Stocks: Hero Motocorp, TCS, HCL Tech, ICICI Bank, Kotak Bank, Tata Steel & Coal India  

F&O Stocks: CESC, Petronet LNG, Exide Inds & LT Finance 

Cash Stocks:  Nestle, Britannia, Ingersol Rand, HIL, Dredging Corp, Max India, Prec Wire, Aries Agro & IL&FS Trans.

Key data to watch (Domestic):

·         RBI monetary policy review on 5 August 2014.

Key data to watch (World):

·         CPI & Existing home sales data on 22^nd July 2014

·         Jobless Claims & New Home sales data on 24 July 2014

·         China's HSBC PMI index for July on 24 July 2014

·         Durable goods orders on 25 July 2014

·         GDP & FOMC Meeting announcement 30^th July 2014.