The Indian benchmark indices – Sensex and the Nifty – ended the winning streak that was going on for the last two consecutive weeks and closed at 28,599 and 8,780 respectively due to selling pressure and profit booking on many counters. The markets had opened last week with a downward gap following the global markets.
Going ahead, the selling pressure witnessed last week is likely to continue. There is a Sharp fall in food prices according to the CPI data for August released last week. The bank of England has kept the rates unchanged in the review meeting but has announced that rates may come down in near future. The key event that the world is watching is the fed meet which starts on Tuesday. The possibility of US rate hike will keep the markets volatile on Monday and if, the rate hike becomes a reality , there could be further sell off in the markets.
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.
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