Last week witnessed the Sensex and the Nifty closing at record highs at – 29,279 and 8,836. It was a strong week for the Indian markets as the indices recorded an average of 4% gains. The ECB’s announcement that it will expand its bond repurchases program to 60 billion Euros per month send the Indian stock markets soaring. Not only Indian markets, but most of the global indices closed on a strong note.
Monday being republic day , is a holiday for Indian markets .The 4 day week ahead will react to the outcome of India-US business summit and the Greek election results. While the first one is likely to have a positive impact on Indian markets, the Win of anti-austerity Syriza party in Greece is likely to have negative impact in financial markets worldwide.
Last week’s trading began with concerns over plunging oil prices but the RBI governor pepped-up the sentiments with a 25 basis points rate cut. This move from the RBI governor along with short covering and encouraging economic data turned the Indian stock markets more optimistic. The Sensex and the Nifty closed the week on an optimistic note closing at 28,122 and 8,514, exceeding our expectations for the week. The up-beat mood created by RBI’s rate cut is likely to continue this week too as there is renewed buying interest . The results season are on and the following corporates are expected to come up with the quarterly results -
The week that passed by performed almost according to our expectations – there was no huge surge and the sensex and the nifty it closed at 27,458 and 8,284 well within our down target of 27,500 and 8,250. Selling pressure was seen across the global markets, not only in India as crude oil prices continued to crash causing more concerns on its effect globally. Investors who have exposed money in recent times may be under a lot of pressure to sell off their investments should the markets correct further.
The week starting on January 12th will see many economic data releases. Industrial production (IIP) for October and consumer price index (CPI) for December will be released on January 12th. The whole sale price index (WPI) will be released on January 14th and this will be followed by quarterly results from biggies. The result calendar is as follows:
It was a good start to 2015 as large cap stocks logged 2% gain and Mid caps and small caps gained around 4% in the Indian stock markets. Although the markets remained range bound during earlier part of the week, the bulls came back on Thursday and Friday determined to continue the party. The benchmark indices – Sensex and the Nifty closed at 27,888 and 8,395 giving an optimistic tone to the start of 2015. But as said in or last post, most stocks are priced above their fundamental valuations and it would be risky for investor to pick up stocks without proper valuation.
Two big triggers expected in near future are – the corporate Q3 results and the RBI’s stance on interest rates. Q3 results would kick off on jan 9th with Infosys and the interest rate decision by RBI will come up in the next policy meeting. Decline in global commodity prices may induce RBI to lower the interest rates in near future.
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