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Indian stock markets are expected to open on a positive note on Monday, as roller-coaster global markets are up. As the domestic entered the all important crucial week with the Budget being presented on Tuesday, analysts expect domestic markets to move in a range on Monday.
“Equity markets have been witnessing increase volatility over the last few days. While the US Fed outcome is now behind, several other factors including ongoing result season, Union Budget on Feb 1st and Russia-Ukraine conflicts would keep the market volatility high in coming week as well,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
SGX Nifty at 17,275 indicates a gap up opening of at least 150 points, as Nifty futures on Friday closed at 17,125.65. Equities across Asia-Pacific region are up, led by Korea and Japan. However, Australian benchmark is ruling marginally weak in early deal on Monday.
On Friday, the US stocks bounced back sharply.
Post-Budget rally?
Santosh Meena, Head of Research, Swastika Investmart, said: “This week is going to be very important and extremely volatile on the back of the Union Budget. However, the good part this time is that the market is heading to the Budget on a very light note and there is a high probability of a post-budget rally. A similar trend was visible last year where the market witnessed a pre-budget sell-off and then there was a post-budget rally.”
FPIs who were net buyers in the early days of January turned sellers after the first week and surprisingly turned aggressive sellers during the last several days. According to the NDDL data, for January, till 28th, FPIs have sold equity worth ₹28,258.82 crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “FPIs have been booking profits in IT where they have been sitting on big profits after the huge appreciation in the last two years.”
"FPI selling has depressed the stock prices of financials, particularly that of leading banks. This is an opportunity for retail investors to buy into this performing segment. From the FPI perspective, the market is expecting Budget proposals to include India in the global debt indices. A post-Budget rally triggered by some positive proposals can turn the market around prompting FPIs to turn buyers," he added.
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