We expect the Indian bourses to open on a positive note. Investors’ increased appetite for risk is expected to lift the mood of the markets. With the result season now being over, the markets will take cues from important data announcements such as Bank Loan Growth, Bank Deposit Growth and Foreign Reserves data.
The markets will also be impacted to an extent by the macro-economic developments on the global front.Renewed scuffle in the middle east and Ukraine continue to remain causes for concern. Investors are expected to remain cautious to some extent as they are trying to gauge the events unfolding in the Middle East and Eastern Ukraine. Overall, we expect markets to maintain an up move with its fair share of volatility induced by intermittent profit booking.
Coming to sectors the Power and Infrastructure stocks would remain in focus following reiteration of the government’s ambitious targets relating to infrastructure development.
We expect to see some action in the Banking stocks towards the end of the week owing to the announcement of credit and deposit growth data.
Railway stocks will also be in focus with the government considering establishment of independent regulator for the railways to settle disputes as the sector has been opened up to overseas investment.
The US markets are likely to extend last week’s gains and open the week on a positive note. However, investors are likely to remain cautious after Friday’s sell off on news of escalation of the conflict in eastern Ukraine.
The European markets are expected to remain range bound and trade with a positive bias. Sentiments in Europe are expected to remain weak after recent data indicated stagnating growth in the Eurozone economy and the developments unfolding in Ukraine. Investors’ sentiments would also be affected by some more macro-economic indicators that would be unveiled during the week.
Asian markets too are expected to open in the green on Monday.
The world markets would also be impacted by a number of economic data that are expected to be announced during the course of the week. Some of the important data announcements during the coming week include the EU Balance of Trade, US Jobless Data, UK Retail Price Index & Core Inflation, US NAHB Housing Market Index, US Mortgage Data, US Home Sales Data, Japan’s Balance of Trade, Japan Stock Investment by Foreigners, UK Retail Sales & Public Sector Borrowing, Japan Manufacturing PMI Flash and EU Manufacturing & Services PMI Flash.
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(Working as Head-Research at Eastern Financiers Ltd, am a post graduate in commerce from Calcutta University, and have gained wide experience in the last 18 years. Prior to joining Eastern Financiers, I have gained in depth knowledge of the Financial Markets while working with Capital Market Publishers, Lohia Securities & CD Equisearch. As head of the Equity Research Wing, I appear regularly as Guest Analyst at CNBC, Awaaz, CNN-IBN, NDTV Profit , Zee Business,Bloomberg UTV, ET Now & R Plus.)