The week ahead: US fed meet and macro-economic data to move the markets..

The Indian benchmark indices, the Sensex and the Nifty, extended the rally for one more week to close at 34970 and 10692 respectively recording a 2 month high during the week ended. The market mood was upbeat thanks to the good Q4 results, positive global cues and strong money inflow from domestic Investors.

Moving ahead, the rising crude oil prices are a cause of concern. The pre-poll results in Karnataka elections, widening current account deficit and weaker rupee may cause more volatility in the days to come. Further the valuation of many stocks appears to be really high. The lack of interest in Indian market by FIIs is a red flag worth considering. Foreign investors are shying away from Indian markets and their net purchases are approximately 75% lower than in the same period last year – which clearly shows why we should be wary about the way prices are moving. Of course, higher growth prospects, the IPO boom etc may partly justify the pricey valuation side of Indian equities, but it’s best to stay cautious and hand pick only the right stocks at this stage.

Key events to watch out includes US fed meet , Q4 results , auto sales numbers for March , FII and DII activity and crude Oil price movement

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