Domestic markets are likely to open on a negative note on Monday.

As the IT majors Infosys and TCS have disappointed with their Q4 numbers, analysts expect markets to come under pressure. According to experts, another index heavyweight HDFC Bank, too, reported a mixed review.

Besides weak quarterly results reported by index heavyweights, analysts also worried over monsoon, which many believe, will be below normal despite contrasting forecast by Skymet and the IMD.

However, amidst all these, analysts said foreign portfolio investments is likely to continue and that will help market to remain in a range. SGX Nifty at 17,790 indicates, a gap down opening of about 90 points, as Nifty futures last week closed at 17,879.50.

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At seven week high

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd, said benchmarks logged nine straight days of gains to end higher on the last day of the truncated last week.

 “Indices logged the longest stretch of gains in over 30 months since October 2020. The market rose to a seven-week high, ending at its highest level since February 21, 2023. The major reason for the rise in the indices can be the weakness in the US dollar and this has fuelled FII’s buying interest in emerging markets,” he added.

Meanwhile, Asian stocks are mixed with Japan, Korea and Hong Kong markets down even as Australia stocks eke out marginal gains.

The correlation between FPI and the market has become very significant, said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

FPI strategy

“FPIs were continuous buyers in the market during the last ten trading days and the market posted continuous gains during the last nine trading days. FPI buying and short covering are driving the current rally. Global market construct has also been positive,” he added.

“FPIs are buyers in capital goods, construction and FMCG and sellers in IT and oil and gas. IT is likely to witness more selling in the coming days since the growth prospects for the segment appears weak an indicated from the Q4 results of TCS and Infosys. Capital goods, financials and construction related segments are likely to witness more buying as indicated,” he further said.

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