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.
Last week, the Sensex and the Nifty closed marginally higher at 28,078 and 8,683 respectively thanks to the passage of GST bill and strong global cues towards the weekend. Passage of GST bill doesn’t mean that everything about it is over. There are still many steps to be completed before it becomes a reality. Every state has to approve the GST and this may keep markets on the edge in the coming months.
Going ahead, the RBI meeting is on Tuesday and experts are of the opinion that key rates will remain unchanged. Both the indices have managed to technically break the resistances at 28,000 and 8,600 but the break is not strong enough to confirm that the momentum is on. However, the markets are likely to start off the week on a high. The Nifty futures trading on Singapore Exchange were up 56.50 points or 0.65 per cent at 8,759 which indicates a high start for sense and Nifty here.
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