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Indian stock markets are likely to see a positive opening, thanks to strong global cues. According to analysts, the Centre’s decision to release an additional ₹47,500 crore to States as their share of taxes to boost capital spending, especially for infrastructure, will be viewed as a positive for the market. Though the WPI index rose to a 5-month high, analysts expect RBI to maintain accommodative policy as it focuses more on economic growth.
Both institutional investors turning net buyers, analysts expected only a limited downside for Indian markets. On Monday, FPIs (net) bought shares worth ₹424.74 crore and domestic investors at ₹1,524.67 crore.
SGX Nifty at 18,186 signals a gap up opening of at least 50 points for Nifty futures, which closed on Monday at 18,131. However, equities across the Asia-Pacific region are giving mixed signals, like Japan, Hong Kong, Taiwan and Korea markets are up even as Australian, New Zealand and Vietnam are down marginally. US stocks, overnight, closed flat but in the negative territory.
Experts believe global cues will drive Indian stocks too in the short term.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, Going ahead, the market is likely to take direction from global cues and might continue to consolidate in the absence of any major domestic events.
"Apart from this, investors will keep eye on slew of macro data that are expected to release during the week globally. Investors would take cues from US Fed as to how soon it would start hiking interest rates. Thus long term investors could look to accumulate into any possible correction in a staggered manner while traders should follow stock specific action and keep strict stop-losses," he added.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short term uptrend of Nifty remains intact, and the current range0bound action is not confirming any reversal from the highs as of now. There is a possibility of 1-2 day's of range movement before showing any upside breakout of 18200 levels. Immediate support is placed at 18,020 levels.
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