Domestic markets are expected to open flat with negative bias. Though domestic institutions keep market float, analysts expect the market will align with the global trend. Amidst contrarian stand of FPIs and DIIS, domestic market to remain volatile but will move in a broader narrow range.
Foreign portfolio investors sold ₹538 crore worth of equities on a net basis on Monday, while DIIs bought ₹687 crore, as per provisional data provided by exchanges.
SGX Nifty at 18,456 signals a negative opening for Nifty, as Nifty futures on Monday closed at 18,499. Asian stocks are mixed with Japan’s Nikkei ruling in green even as equities Australia, Korea, China and Taiwan are down in eary deal on Tuesday.
The focus now shifts to minutes of RBI MPC Meeting.
Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd, said: All eyes will be on RBI MPC meeting minutes to trickle on Wednesday, December 21. The street will look for clues with regard to the inflation scenario and RBI’s plan of action in the months to come.”
Overnight, the US stock slumped amidst growth fears.
Capital goods, infra in focus
Despite weak global cues, Indian equities have shown resilience and remained firm, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
“In the absence of any major trigger, we expect markets to move sideways with support base buying at lower levels. Capital goods, construction and infra sector should be in focus with improvement in project ordering activity and also interest in the space ahead of upcoming union budget. Also, Oil & Gas and Sugar sectors are likely to stay in focus after the positive news flow,” he added.