Global Cues To Dominate Domestic Markets This Week

Mumbai, Sep 14: Indian markets ended Friday on consolidated gains. The markets are further expected to consolidate, taking cues from global developments and upcoming FOMC meet, including border tension between India and China. Market participants Monday expect to react on the IIP numbers, followed by the CPI and WPI inflation data in the subsequent sessions.

In the previous trade, Indian markets consolidated in a range amid mixed cues, but managed to end in the green. Subdued global markets were weighing on the sentiment, however, recovery in select index majors in the last two sessions triggered a sharp rebound. 

The strong performance from Nifty heavyweight, Reliance Industries Ltd (RIL), combined with favourable news of disengagement between India and China at LAC were the key highlights which aided some relief. However, underperformance from the banking pack capped the upside in the benchmark. Amid all, the Nifty index finally ended at 11,464.45 points up by 1.15 per cent and the S&P Sensex too inched up by the same margin at 38,854.55.

Nirali Shah, senior research analyst, Samco Securities said, “Given no major occurrence in domestic markets would be majorly driven by heavyweights. RIL is one example, which is experiencing a second wave of fundraising, and this could keep the sentiment positive in the coming weeks.”

“Global markets may take comfort from subdued crude prices, economies opening up, consolidation of gold among few other factors. It would be prudent to remain cautious as there is a high probability of further correction. Investors are advised to stay cautious and keep sufficient liquidity in their portfolio,” he added.

Although benchmark indices gained around 1.2 per cent on a weekly basis, it was characterised by volatility, while FIIs have also pulled out around Rs.4500 crore this month so far. 

Vinod Nair, head (Research), Geojit Financial Services said, “Due to the lack of any official statements from the high-level talks to defuse border tensions, investors need to be prepared for slow progress in this regard. As such, this uncertainty will keep the markets worried for the short term. Any fresh domestic triggers will mean that investors will continue to watch global cues for any directional trend for the next week."

Ajit Mishra, VP (Research), Religare Broking said, “Markets will continue to take cues from the global indices and upcoming FOMC meet. Indications are in the favour of further consolidation in the Nifty index and the probable range could be between 11,100 and 11,600 levels. We may see some recovery in the banking pack ahead, but traders should limit their positions mainly to the sectors which are attracting consistent buying interest.”