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Domestic markets are likely to open flat on Tuesday indicates SGX Nifty though most Asian markets have gained moderately. Analysts expect the market to remain lacklustre with stock-specific action ahead of the Union Budget, which will be unveiled on February 1.
Meanwhile, market experts welcome the Prime Minister’s speech at the World Economic Forum.
PM’s positive speech at WEF
In his speech, Prime Minister Narendra Modi had pitched India as the most attractive investment destination, aided by reforms and the nation’s digital transformation. “While the world focused on quantitative easing during the pandemic, India undertook reforms,” Modi said in his special address at the World Economic Forum’s virtual summit on Monday.
Modi has also highlighted the need for a collective and synchronised response needed to tackle challenges to the the global order like the threat of disruption in supply chains and inflation.
After the recent recovery, technical analysts expect the market to sustain the momentum and to break the previous all-time high.
Prashant Tapse, Vice-President (Research) at Mehta Equities, said, “Nifty’s ascent towards its all-time-high at 18,605 is still on the radar. The technical landscape is still aggressively bullish. This optimistic backdrop should take Nifty easily to its magical goalpost at 18,605 mark and then aggressive inter-month targets at psychological 19,000 mark. There is likely to be lots of opportunities on the buy side as long as Nifty stays above the 17,921 mark,” he added.
SGX Nifty is ruling at 18,333 against the Nifty futures close of 18,336. Equities across Asia Pacific are up between 0.3 and one per cent. The US stocks were closed on Monday.
Analysts expect foreign portfolio investors will return to market in a ‘big’ way post Budget. Expectations are that the Budget will be market friendly.
Export targets
Analysts also said that India’s micro economic numbers are also positive (GST collections, exports) which will keep FPI interest in the domestic markets. India is set to achieve $650 billion exports target in the current financial year, Commerce and Industry Minister Piyush Goyal said on Monday. Out of the targeted $650 billion, $400 billion will be merchandise exports while the rest $250 billion will be services exports.
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