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After a long weekend, domestic markets are likely to open steady on Monday despite mixed global cues. Price cut on petrol and diesel and stellar sales figures reported by CAIT will keep market upbeat, though valuation is a main concern, said analysts.
The US Fed tapering move is largely discounted by the markets. However, the US Congress $1-trillion infrastructure bill that was passed by parliament will boost sentiment across the globe.
According to market experts, domestic steel and other metal players, infrastructure and infra consultancy companies and IT firms will be in demand, as the Joe Biden administration is undertaking the largest infrastructure projects in America (roads, railways and other transportation infrastructure).
According to Confederation of All India Traders, Diwali festive season this year generated sales of more than Rs 1.25 lakh crore across India. It said the bumper Diwali sales in 2021 was not triggered by 'Revenge Buying but a Sustainable demand trend'.
Global markets
Though the US stocks closed at a record high on Friday, equities across Asia-Pacific are mixed. The SGX Nifty at 17,995, indicates an 80-point gap up opening for Nifty futures, which on Muhurat trading closed at 17,916.70. Most of the Asia-Pacific markets are down though Taiwan, the Philippines, Indonesia and Vietnam stocks eked out marginal gains.
“After an extended weekend, Indian markets are likely to start a fresh week with a positive note on the global backdrop however there is a risk of selling pressure at higher levels as we are underperforming the global peers where the near term texture has changed to 'sell on rise' from 'buy on dip', said Santosh Meena, Head of Research, Swastika Investmart Ltd.
According to Dhiraj Relli, MD & CEO, HDFC Securities, "After a great year for equity markets, investors are looking forward to markets continue rising though not at the same pace. Global headwinds in the form of rising inflation and withdrawal of monetary stimulus may impact the momentum, but strength in Indian macros and improving micros may help offset these. Investors need to conduct portfolio review, asset allocation review, and raise the quality of stocks held in their portfolio."
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