Domestic markets are expected to open flat on Monday amid mixed global cues. Due to the lack of domestic cues, analysts say participants will look to overseas markets for direction, especially the behaviour of foreign portfolio investors.
Nifty futures at Gift City are ruling at 22653 (710 am) as against Nifty March futures at 22,552.35. This signals a gap-up opening. However, most equities across Asis are reeling under pressure.
Manoj Purohit, Partner and leader—FS Tax, Tax and Regulatory Services, BDO India: “FPI inflows have shown a positive trend compared to the previous month. Thanks to the recent announcement of Q3 GDP numbers at 8.4 percent, the persistence performance of large Indian corporates is major factor in turning the tide green for the Indian equity market.”
On the regulatory front, announcements such as the removal of UAE from the grey list and SEBI’s consultation paper for easing UBO disclosures norms for regulated FPIs have been the major catalysts to put India on the forefront of potential long-term investments for the foreign fraternity, he added.
Following last Friday’s weak close of the US stocks, Asian stocks are under pressure, except for Chinese markets. Japan’s stocks are down over 2 per cent, while Australian equities are weak at about 1.5 per cent. However, Hong Kong and Chinese stocks are up by about 1-0.3 per cent even as Korean stocks edged down marginally.
Ajit Mishra, SVP—Technical Research, Religare Broking Ltd, said: Apart from the scheduled macroeconomic data, the performance of the global indices will continue to offer cues over market direction. Currently, the US markets are seeing some profit taking after a steady uptrend for four months. That might result in intermediate volatility in our markets, too, especially at the open.
Arvinder Singh Nanda, Senior Vice President of Master Capital Services, said the outlook for the market may depend upon major global and domestic economic data, US Fed rate decisions, foreign and domestic institutional investors’ investment patterns, global market trends, rupee movement against the dollar, crude oil inventories, and upcoming general elections.
He added that the major economic data that will be focused on in the coming week are Japan’s and the UK’s GDP, the UK unemployment rate, US CPI Inflation numbers, industrial production data, and India’s CPI and WPI inflation figures, Industrial production, and manufacturing output.