Auto, cement stocks could be in focus ahead of monthly sales data

Investors may continue to avoid riskier assets as ongoing debt crisis in Europe as well as the slowing global economy has hurt sentiments. However, bargain hunting cannot be ruled out after recent sell-off in stock prices. Investors will closely monitor foreign funds' activity. Foreign institutional investors (FIIs) have been heavy sellers in domestic equities recently. Weak corporate earnings, slowing economic growth and a faltering rupee remain a cause for concern.

The government unveils Q2 September 2011 gross domestic product (GDP) data on Wednesday, 30 November 2011. The economy expanded 7.7% in Q1 June 2011 from a year earlier, helped by strong growth in the services sector.



Automobile and cement stocks will be in focus as companies from these two sectors start unveiling sales volume data for November 2011 from Thursday, 1 December 2011.

The government will on Thursday, 1 December 2011, will unveil data on some wholesale price indices viz. the food price index, the primary articles index and the fuel price index for the year through 19 November 2011.

The HSBC's purchasing manager index (PMI) for the month of November, indicating health of manufacturing activity is due next week. HSBC Business activity index also for November, indicating health of the services sector activity, will be out in early December 2011.

Investors will closely watch the unfolding of winter session of the parliament as many key bills will be tabled in the parliament for clearance. The winter session of the parliament began on Tuesday, 22 November 2011. Among key financial Bills pending before Parliament in the current winter session is the Pension Fund Regulatory and Development Authority (PFRDA) Bill 2011, which will provide the regulatory authority statutory powers, including that to take punitive action on violations. The interim PFRDA authority, at present, is not backed by a statutory mandate.

Among other bills, the Judicial Standards and Accountability Bill is the cornerstone of the judicial reforms much touted by the government. Its intent is to bring about disclosure of assets for all high court and Supreme Court judges and lay down a 'code of conduct'. Thereby, judges can be probed over corruption allegations as that would be a violation of their code of conduct.

Among other important Bills lined up is the National Advisory Council-backed National Food Security Bill. Issues such as the extent of coverage of such food security, the amount of subsidy and the role of the PDS in such a system will be the aspects likely to be debated. The sports ministry-led National Sports Development Bill and the Nuclear Regulatory Authority Bill are among the 23 new Bills listed for introduction.