Comments
Contrary to expectations that Indian stock markets will plunge due to the withdrawal of farm laws, domestic benchmark indices are likely to open on a steady note. SGX Nifty at 17,849 indicates that Nifty is likely to open moderately positive, as Nifty futures on Thursday closed at 17,790. However, global cues are negative as most Asian stocks are ruling in the red. Last Friday, US stocks too ended negative.
Analysts expect the market to remain volatile due to F&O settlement week on the NSE.
Santosh Meena, Swastika Investmart, said: “Indian market is showing signs of weakness after a long consolidation and there is a risk that weakness may get an extension ahead of the November month F&O expiry. Indian markets have underperformed since the beginning of the November series as we are seeing a mean reversion after a long period of outperformance in 2021”.
FPIs pump in Rs 19,712 crore in Indian markets in November so far
Focus is also on foreign portfolio investors, who have remained sellers in the secondary market.
Indices expected to move sideways
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said: “Last week did end on high spirits but the broader sentiment continues to be directionless as retail investors and FIIs turned prudent over better asset class opportunities other than equities in India and globally. This cautiousness is not new to D-Street and markets have been more or less tepid since the beginning of November.”
“Given that most of the quarterly results and the festive mood are behind us, indices are expected to move sideways. As markets across the world are trying to decode the implications of rising inflation, any intensive selling by FIIs may take Indian indices lower, unless the domestic players provide support,” Chouhan said.
What do global macros foretell for markets?
Indian markets will react to the news of the withdrawal of the farm laws Bills. “I think this should not have much impact on the market because these Bills were not implemented yet. However the texture of the market is weak where the market reads more negative cues than positive cues,” Meena said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.