Domestic stock markets are expected to open on a positive note, tracking a strong closing in the US stocks.
According to analysts, Indian markets will largely be guided by global sentiment, especially the US.
In the coming times, the movements of the stocks will be guided by the economic data, Fed policy, India Q3 results and Union Budget.
SGX Nifty at 18,088 signals that Nifty may once again regain the crucial 18,000-mark.
Analysts said the direction will largely depend up on foreign portfolio investors.
“FPIs have turned sustained sellers in the market. They sold for eleven consecutive days taking the cumulative selling to ₹14,300 crore. And, the money taken out is being invested in the underperformers of last year like China and Europe, which are doing well now,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Clearly, FII money is chasing lower valuations by selling in overvalued markets like India. This is the important trend in near term FPI activity. If this trend continues, it might weaken the Indian market further,” he said.
However, If the FPI selling continues, it will open up opportunities for investors, he further said and added, “FIIs will sell stocks in which they are sitting on profits, like the banking segment. And this segment continues to be strong”.
Asia-Pacific stocks are up in early deal on Monday, led by Korea’s Kospi and Tawain SE. Major markets such as Japan, Australia and Hong Kong are up between 0.5 and 0.75 per cent.