Good PMI numbers and low expectations of the US Fed rate hike pumped up investor sentiments which resulted in the markets closing at 28,797 (Sensex) and 8,867 (nifty) points respectively. The indices closed 265 and 57 points higher and renewed buying interest were seen in select mid cap and small cap counters.
Going ahead, the markets will be closed on Tuesday on account of Bakri-id. The near term market movement will be dictated by the IIP and inflation data which are scheduled to be released this week. Now since the markets have reached the highest point in the last 17 months, there is a wave of optimism going on. Profits booking in selected counters are also on cards since the recent surge has given decent returns to short term traders.
The markets rallied strongly to end the week in green, compensating for two weeks losses and closing at the brink of a new possible high. Both the Sensex and the Nifty made an emphatic come back closing at 28,532 and 8810 respectively. The markets gained 2.7% for the week ended. Overall, the Sensex and the Nifty has gained more than 26% since February lows, breaking the medium term resistances.
key indices, the Sensex and the Nifty closed the previous week in red as the Fed reserve chairperson Janet Yellen’s review speech kept the markets on the edge. There is no doubt that a rate hike would not be a good thing for emerging markets since the probability of mass pull out of funds from economies like India are very much on cards if the rate hike is a reality.
Going ahead, earnings numbers from DLF, MOIL, IOC and BPCL are likely to hit the markets this week. Auto stocks will also be on focus as the companies will be declaring the auto sales figures towards the weekend.
The Indian equity markets ended on a flat note last week due to weak domestic economic data and increased chances of US rate hike in September. Investors are on an edge as the speculation regarding when the next interest hike cycle might start in already gripping the markets.
Going ahead, Monday morning is likely to witness a positive start as the markets are expected to cheer the appointment of Urjit Patel as the next RBI governor. Mr Patel spearheaded the recent inflation targeting approach of the RBI. This is positive for the long term prospects of Indian markets and bad news for those who fight for a low interest regime in India.
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