The week ahead: Markets to start on a positive note..

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.

Apart from RBI, the other events that might influence the markets are quarterly results from companies like Tata Power and NTPC and global crude oil prices which is already past $ 50 for a barrel. The expiry of August derivatives may add volatility towards the end of the week.

In short , big stocks may stay volatile as the indices struggle to get past the present levels. But stock specific movements in Midcaps and Small caps may continue.

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