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Indian benchmark indices are likely to close the week on high note, as bulls took a complete charge. After US Federal Reserve Chairman dovish comments last week, foreign portfolio investors too turned net buyers in Indian market, said analysts, who expect easy liquidity to continue for some more time, as the Fed is unlikely to end the bond buying programme in a hurried manner.
Cues from global markets are also positive, giving further fillip to already charged up Indian markets, they added.
Vinod Nair, Head of Research at Geojit Financial Services, said: "Domestic indices nudged higher tracking cues from positive economic data, FII buying and mixed global markets ahead of the release of US job data. Economic data is nudging the performance of core sectors like capital goods & industrials while the recent high performance of the market is also tempting investors to shift to safer defensive sectors. All major sectors followed the market trend while the auto sector lost ground due to weak sales, said
SGX Nifty futures currently hovering around 17,283 (at 8 am), as against Nifty futures Thursday’s close of 17,247.25 points and the Nifty spot close of 17,234.15. Most Asian markets are up by about 0.50 per cent in early deal on Friday; The US stocks also ended on positively with all the three major indices - S&P 500 and Nasdaq – gaining 0.2-0.4 per cent.
Binod Modi, Head Strategy at Reliance Securities, said: “While concerns over global growth due to recent rise in delta variant Coronavirus cases in different parts of the world continue to persist, we believe that underlying strength of domestic market remains intact. However, considering current macro scenario, liquidity driven market rally might take a backseat in 2022 and therefore investors should be advised to focus on quality companies with strong fundamentals. In our view, festive demand, recovery in rural market and COVID-19 positivity rates will be in focus in the near term. We note higher government’s capex and revival in industrials’ capex should aid economic recovery”.
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