After touching seven month high on last Tuesday, the Indian benchmark indices retreated – probably profit booking was the reason. Looking back from February 2016 , the indices have moved up more than 18% in 5 months and that’s quite enough to prompt profit booking.
Going ahead, investors may wait before exposing too much funds because we see a possibility of further downward movement in stocks. Gold prices shooting up in the past couple of days is one reliable evidence that investors are looking to park their funds in safe havens. Worries over Britain’s decision to stay away from EU , Chinese economic data and US Fed meeting that ends on Wednesday are good enough reasons to create too much of uncertainty among investors.
In the biggest weekly gain since March 4, the Indian benchmark indices –the Sensex and the Nifty registered a gain of 1351 and 406 points respectively. There were several positive reasons for it such as expectation of a good monsoon season, approval of the National capital goods policy, positive comments on the financial situation of India by rating agencies such as Fitch and Morgan Stanley, better than expected Q4 results and the fears of Great Britain exiting the Euro Union. The global markets were also on a song as new home sales data showed a surge in US signalling economic recovery.
It was a dull week for stock markets as the initial positive start was lost mid-way due to fears of rate hike by the Fed. The benchmark indices the Sensex and the Nifty ended at 25,302 and 7,750 down approximately 0.80%.
The result season has been a mixed one with most of the public sector banks delivering poor results. The numbers of SBI will be keenly watched this week and may also influence the market movement. Other corporates coming out with results include BPCL, Tata Power, Cipla, Tech Mahindra, Bajaj Auto, GAIL, Tata Steel, Larsen & Toubro, Bharat Heavy Electricals and Coal India. Apart from this , the May derivatives would come to an end this week and hence there are more chances of volatility in the markets.
The Indian markets ended in red for the second consecutive week due to negative global cues, weak trend in crude oil prices and caution over assemble elections results. Global markets fumbled due to weak Chinese manufacturing data. However, US markets rebounded due to weaker than expected job data which may suppress the Fed to postpone further rate hikes. The domestic indices – Sensex and the Nifty closed at 25,229 and 7,733 down 1.48% each.
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