8:30 AM
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Last week, global fears brought down Indian equities. Sustained selling by foreign institutional investors kept stocks under pressure in a truncated week. The broad market index, S&P CNX Nifty, lost 4.48% over the last week, ending at 4845, much below the psychological mark of 5000. The week saw all sectoral indices closing in the red. The CNX Midcap underperformed Nifty with a weekly loss of 5.94%.
“The markets are expected to remain volatile ahead of the F&O expiry next week and4680 level on the Nifty will be a crucial support to watch out for.
Coming Week, the markets will wait for cues from the global markets. The banking space is expected to remain under pressure given the rising stress in the global financial system and the possibility of a further rate hike of 25 basis points. Analysts will watch inflation data to be released on Thursday. The shares of select non-bank financial companies are expected to remain in demand as market experts expect RBI to come out with guidelines for new banking licences.
The monsoon session of Parliament has not seen any progress in policy reforms and the investor community has not received this well. If the government fails to propel policy reforms at the earliest, there is the possibility of reduction in foreign institutional interest in Indian equities.
Investors will be better off investing in stocks where promoters have not pledged their holdings and foreign institutional investors do not own much. Longterm investors can look at stocks with least global linkages.
FIXED INCOME
The 10-year benchmark yields came down marginally over the last week. Market participants will closely watch the inflation data next week. “The 10-year yield should go down by 5 to 10 basis points. Money market rates are expected to fall by 25 basis points.
GOLD “The markets are expected to remain volatile ahead of the F&O expiry next week and4680 level on the Nifty will be a crucial support to watch out for.
Coming Week, the markets will wait for cues from the global markets. The banking space is expected to remain under pressure given the rising stress in the global financial system and the possibility of a further rate hike of 25 basis points. Analysts will watch inflation data to be released on Thursday. The shares of select non-bank financial companies are expected to remain in demand as market experts expect RBI to come out with guidelines for new banking licences.
The monsoon session of Parliament has not seen any progress in policy reforms and the investor community has not received this well. If the government fails to propel policy reforms at the earliest, there is the possibility of reduction in foreign institutional interest in Indian equities.
Investors will be better off investing in stocks where promoters have not pledged their holdings and foreign institutional investors do not own much. Longterm investors can look at stocks with least global linkages.
FIXED INCOME
The 10-year benchmark yields came down marginally over the last week. Market participants will closely watch the inflation data next week. “The 10-year yield should go down by 5 to 10 basis points. Money market rates are expected to fall by 25 basis points.
Along with fears of a sovereign default, there is the possibility of large financial institutions going down in Europe. This may result in increased volatility in asset prices. This is amply reflected in galloping gold prices over the last week. The ultimate currency is expected to remain firm as investors are wary of risky assets. The stability of Euro as a currency is being questioned, and this will further push up prices of the yellow metal in the near term