Comments
After Friday’s fury, bulls are likely to come back with a vengeance on Monday, as Dallas Federal Reserve President Robert Kaplan said on Friday that he might need to adjust that view if the Delta variant of the coronavirus slows economic growth materially. According to global media reports, Kaplan was among the US central bank's most forceful supporters for starting to reduce support for the economy.
“In the absence of key domestic economic data points and awaiting its release, the market is expected to continue its focus on global events in order to gain momentum. Global rise in covid cases is also a cause for worry, keeping the volatility high,” said Vinod Nair, Head of Research at Geojit Financial Services.
Analysts said that this being the August series settlement week on the NSE, markets are likely to see volatility and advise caution on individual stocks.
Following his statement, global stocks bounced back as investors believed the easy money policy would continue for quite some time.
Clues from SGX Nifty indicates that Nifty is likely to witness a gap-up opening of 150 points. The SGX Nifty is currently hovering around 16,623, much higher than the Nifty future’s Friday close of 16,433 (August) and 16,467 (September).
The US stocks on Friday closed higher with Dow Jones and S&P 500 rising 0.65 per cent and 0.8 per cent respectively; the tech-focussed Nasdaq too climbed 1.1 per cent.
Tracking the global sentiment, markets across the Asia-Pacific region such as Japan, Taiwan, Korea and China jumped over one per cent. Australian markets are up only marginally.
With settlement in F&O monthly contracts ahead, volatility to rise, they cautioned.
According to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, markets were broadly satisfied with the conclusion of the Q1-FY22 earnings season, as Nifty 50 Index EPS estimates witnessed moderate upgrades. With result season behind, the markets will likely keep a tab on domestic and global data, including Central Bank policy measures, inflation, commodity prices, and Covid-19 cases.
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.