NEW DELHI: India’s stock exchanges and their indices are likely to take their cues from global developments over this week, say experts. In particular, stock markets in the country are expected to track macroeconomic data announcements and the US Federal Reserve’s decision on interest rates in the country.
“This week, domestic markets will be waiting for major data points like inflation and import-export updates. The trend in global markets will be guided by developments in Brexit deal talks and updates on the expected US stimulus package,” said Vinod Nair, head (research) at Geojit Financial Services.
Meanwhile, Siddhartha Khemka, head (retail research) at Motilal Oswal Financial Services, said, “The overall trend of the market remains positive as it is showing resilience on the back of abundant liquidity, positive developments on the vaccine front and signs of economic recovery.” He added that the market may consolidate at these levels for some time given stalemate in US stimulus and concerns over a probable no-deal Brexit talk.
“Indications are in favour of some consolidation in the index and it would be healthy for the markets,” Ajit Mishra, vice-president (research) of Religare Broking Ltd, said. Binod Modi, head (strategy) at Reliance Securities, said, “Any possible no-deal Brexit may be a near-term headwind for the markets ahead of the December 31 deadline.” He added that given persistent dovish tone of global central bankers, “FPI flows should remain benign in subsequent period”. The BSE Sensex had risen 1,019.46 points (2.26%) during the last week.