Markets this week will closely track events like the hearing of coal blocks allocation case in Supreme Court, industrial output figures and inflation data as investors await fresh triggers for benchmark indices to resume their upward journey, say experts.
Shares of metal and power companies will be in focus as the Supreme Court will hear the coal block case on Tuesday.
Industrial production figures for July would be released on Friday. Data for inflation based on combined consumer price index (CPI) would also be announced on the same day.
Trends in investment by overseas investors, movement of rupee against the dollar and crude oil price will also give cues to investors.
The BSE benchmark index Sensex closed at 27,026.70, showing a gain of 388 points or 1.45 per cent last week, during which it hit lifetime high of 27,225.85. The Nifty ended at 8,086.85, logging a rise of 132.50 points in the same period.
“Overall, we feel markets look positive and trade positions, market activity, derivatives positions, sentiments all indicate towards a healthy market movement in the coming
week. The Ukraine crisis is about to get resolved which is positive for the markets.
“We expect the markets to remain upbeat and FII flows shall continue to enter emerging markets like India,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
A host of positive developments on domestic as well as global fronts have helped the market to go on a winning spree. The sentiment has turned bullish as capital inflows
picked up after economic growth improved to two-and-a-half year high of 5.7 per cent in April-June quarter, brokers said.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said, “We have two very important data — CPI and IIP… they are hoped to be better than previous releases and so this would boost Indian markets. Technical indicators are suggesting the positive movement continuing for the markets.”
Investors would be closely tracking Supreme Court’s developments in coal block allocations case due on September 9, said Jayant Manglik, President-retail distribution,
The European Central Bank (ECB) on Friday cut its policy rates and announced additional measures to stimulate the deteriorating economy. There is some buzz that domestic markets could benefit from such funds, dealers said.
“On the domestic front, things are looking up on the heels of PM’s successful Japan sojourn,” said Aman Chowdhury, CEO and Co-Founder, Cians Analytics.