Markets may see some profit booking next week

After a fast and furious rally, markets are likely to see some profit booking next week. Parliament is set to reconvene on April 22 and given the way things have panned out, a disruption of sessions is likely. This could add to pressure on the markets. Issues with regards to the JPC report on the 2G scam and the Delhi rape incident are likely to see frequent disruptions.

Corporate results have been on expected lines, except for the sharp underperformance from Infosys. Forthcoming results from bigwigs including HDFC Bank and ICICI Bank will set the tone for the markets.

Private sector banks are expected to continue to do well, while PSU banks are expected to be laggards. Globally, stock markets have fallen, while Indian markets have rallied. As long as commodity prices remain low, Indian markets are likely to find their feet once again.

Apart from corporate results, the next big trigger would be the RBI Monetary Policy Review slated for early next month. Analysts are largely expecting the RBI to cut rates, given the fact that inflation has consistently been falling. Should that happen banking stocks would continue to be in the limelight.

It's likely to be a volatile session next week with a slight negative bias for the indices.

GoodReturns.in

Story first published: Saturday, April 20, 2013, 12:26 [IST]

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