Indian stock market forecast next week october 22-26 2012

Indonesia stock info - Indian stock market forecast next week october 22-26 2012 ; The near-month October 2012 derivatives expired on 25 October 2012 and we have a truncated trading week as the stock market remains closed on 24 Oct'12 on account of Dussehra. The focus of the market remains on the Q2 earnings as investors will closely watch the management commentary that would accompany the results which could cause revision in their future earnings forecast.

The market may remain volatile as traders roll over positions in the F&O segment from the near month October 2012 series to November 2012 series.

Key benchmark indices edged lower as weakness in global stocks hit investor sentiment adversely. Domestic markets closed in negative zone on Friday, led by profit booking and sharp fall in the currency.

Moreover, investors will also watch developments on the taxation front as P. Chidambaram had said on 1st Oct'12 that the government will set final rules on tax avoidance within 20 days after considering recommendations made by a government panel.

The Indian rupee fell to a fresh one-month low at 53.97 (INR/US$) vs its previous close of 53.40 on the back of heavy dollar buying by oil firms, the largest buyers in the domestic currency market (sales were also seen from exporters).

The breach of the 53.80 (INR/US$) level paves the way for further fall towards 54-55 levels. On Friday, ITC surged over 2 per cent to hit its 52-week high of Rs 298.80 after it posted a 21.3 per cent jump in quarterly net profit, largely in line with expectations.

On the macro front, during the week data released showed that inflation based on the WPI rose to the highest level in 10 months in Sept'12, limiting the central bank's ability to cut rates to help support the slowing economy.

WPI inflation edged up to 7.81 per cent in Sept'12 from 7.55 per cent in Aug'12 due to a steep hike in diesel price in mid-Sept'12. The core inflation remained steady at 5.57 per cent in Sept'12.

Next week we have important numbers which will start from Bajaj AutoBSE -0.19 % and UltraTechBSE -1.72 % on Saturday, followed by L&T, HDFC, Cairn India, Hero MotoCorpBSE 0.54 %, Sterlite, Lupin throughout the week. 

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