Domestic equity benchmarks BSE Sensex and NSE Nifty are expected to open with negative bias on Monday despite mixed trend in Asia Pacific region. Analysts expect market to remain in a range with dates for general election being announced.

Experts believe global macros will anchor market direction in the short-term. The Nifty futures was marginally lower in early deal on Monday, signalling weak beginning for domestic markets.

“In the coming week, market will react to important macro-economic data like major countries’ S&P Global Manufacturing and services PMI of India, the UK and the US. Important cues will also emerge from China like their industrial production, unemployment rate figures. Besides Eurozone inflation, trade balance, inflation data of the UK and Japan, the US Fed’s rate decision and data related to crude oil inventories are some important numbers,” said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.

In Asia-Pacific region, Japan’s Nikkei 225 was trading with over 1.65 per cent gain even as Australia’s S&P ASX 200 slipped.

Also read: Stocks that will see action today—March 18, 2024

Vinod Nair, Head of Research, Geojit Financial Services, said that after touching a new high, the domestic market witnessed a correction due to concerns over the broader market valuation and increase in volatility.

“The unfavourable risk-reward balance of mid- and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall. Mid- and small-caps corrected led by selling from leverage-based retail investors. We expect bargain opportunities to persist in mid- and small-cap stocks whose valuations are supported by fundamentals. Meanwhile, FMCG and contrarian plays like gold are offering some refuge,” he added.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Bears may seize control following a weak lead from Wall Street in Friday’s trading session, potentially triggering volatility in Nifty as bullish traders scale back amidst anticipation of an impending Fed rate cut. With the Federal Reserve’s decision looming on Wednesday, market volatility is expected to intensify. Investor attention is also shifting towards the upcoming Lok Sabha polls, slated to commence on April 19 and conclude on June 4. Meanwhile, apprehensions loom over the SEBI-mandated Mutual Funds stress test results, indicating potential market stress. According to the stress test outcomes, mid-cap funds may take approximately 6 days to liquidate 50 per cent of their portfolios in a market collapse scenario, while small-cap funds may take about 14 days on average.”

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