Global trends to guide markets in holiday-shortened week ahead: Analysts
rade experts expect the key benchmark indices to move sideways as investors are trying to decode the impact of rising inflation on foreign portfolio investments
Stock markets will focus on global trends for further direction in this holiday-shortened week as the earnings season is largely over, analysts said.
Trade experts expect the key benchmark indices to move sideways as investors are trying to decode the impact of rising inflation on foreign portfolio investments.
See Zee Business Live TV Streaming Below:
Inflation data released by the US and China last week have fanned fears of earlier than expected rate hike and boosted US bond yields.
The US inflation hit a 30-year high level of 6.2 per cent YoY in October. China's CPI rose 1.5 per cent YoY, while the producer price index rose by 13.5 per cent YoY owing to imported inflation and domestic supply shortages.
Inflation concerns and the possibility an early rate hike can keep local stocks on edge as such indicators tempt foreign investors to pump out funds from emerging markets like India.
Indian stock markets declined for three days in a row last before a sharp recovery on Friday last due to inflation worries. Despite three days of losses, the 30-share BSE benchmark jumped 619.07 points or 1.03 per cent last week.
"We were seeing stock-specific movement amid the Q2 earning session and now the market's focus will shift to global cues," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
"Given that most of the quarterly results and festive mood is behind us, indices are expected to move sideways. As markets across the world are trying to decode the implications of rising inflation, any intensive selling by FIIs may take Indian indices lower, unless the domestic players provide support," Yesha Shah, Head of Equity Research, Samco Securities said.
WPI inflation data is scheduled to be announced on Monday.
Rahul Sharma, Co-Founder, Equity99 said, "This week will be a shorter week with the market remaining close on Friday on account of Gurunanak Jayanti. Results season is over with only a few small and midcap companies left which will be declaring their results on Monday. Global events will be affecting the market."
Ajit Mishra, VP - Research, Religare Broking, said, "As the result season is almost behind us, the focus will shift back to global markets for cues."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
04:20 PM IST