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Overseas cues over the weekend are likely to direct local equities in the next week. On the domestic front, the movement of the rupee and economic data are expected to lend cues. The US August non-farm payroll data, which is due to released later yesterday, is likely to give investors clues as to when the US Federal Reserve intends to start slowing down its monthly quantitative stimulus. US' final stand on a limited strike on Syria, likely to be taken on Sep 9, will also be important for indices. Later in the week, investor attention will shift to local economic data, which, if disappointing, could trigger profit booking. The Central Statistics Office, on Thursday, is scheduled to release the Index of Industrial Production data for July, and Consumer Price Inflation for August. However, most market participants have a positive bias for the week on account of the bounce back seen this week.
Contrary to our view, after making a low of 5319, Nifty witnessed a sharp pullback and it has now managed o close above its recent high of 5580. Hence, the short trend has turned up again. The recent appreciation in he rupee has improved market sentiment. There are expectations of additional dollar flows into the country, hich has created optimism on the rupee. Amid rumours of a diesel price hike, stocks of oil and gas companies, which were among major gainers yesterday, are seen positive. If a diesel price hike is announced, it will help lift stocks of these companies and the broader market as well. However, with the general elections close, chances of the government hiking diesel prices by 3-5 rupees per litre are low.
Overseas cues over the weekend are likely to direct local equities in the next week. On the domestic front, the movement of the rupee and economic data are expected to lend cues. The US August non-farm payroll data, which is due to released later yesterday, is likely to give investors clues as to when the US Federal Reserve intends to start slowing down its monthly quantitative stimulus. US' final stand on a limited strike on Syria, likely to be taken on Sep 9, will also be important for indices. Later in the week, investor attention will shift to local economic data, which, if disappointing, could trigger profit booking. The Central Statistics Office, on Thursday, is scheduled to release the Index of Industrial Production data for July, and Consumer Price Inflation for August. However, most market participants have a positive bias for the week on account of the bounce back seen this week.
Contrary to our view, after making a low of 5319, Nifty witnessed a sharp pullback and it has now managed o close above its recent high of 5580. Hence, the short trend has turned up again. The recent appreciation in he rupee has improved market sentiment. There are expectations of additional dollar flows into the country, hich has created optimism on the rupee. Amid rumours of a diesel price hike, stocks of oil and gas companies, which were among major gainers yesterday, are seen positive. If a diesel price hike is announced, it will help lift stocks of these companies and the broader market as well. However, with the general elections close, chances of the government hiking diesel prices by 3-5 rupees per litre are low.
