NEW DELHI: Ending the slow run, Both the benchmark indices - BSE Sensex and Nifty50 made decent gains last week. The BSE Sensex held the 60,000-mark, gaining 619 points, whereas the Nifty50 advanced 186 points to end the week above 18,100.
Going ahead this week, market movement will depend on multiple factors such as Global cues, Paytm Listing and Inflation data. Santosh Meena, Head of Research, Swastika Investmart Ltd said that market’s focus will shift to global cues and Paytm’s listing after the Q2 earning session.
“The market is still looking for direction as headline indices Nifty and Sensex are consolidating, however, many pockets beneath the surface are doing well. We were seeing stock-specific movement amid the Q2 earning session and now the market’s focus will shift to global cues.”
“Global markets are also trading volatile after higher than expected US inflation numbers, however, there is no panic reaction. US dollar index is trading above 95 level and US bond yields are also inching higher that could be a cause of concern,” Meena said.
On the domestic front, he added, “we will react to IIP and CPI numbers on Monday where inflation numbers are slightly higher than expectations while IIP numbers are much weaker than expectations. WPI inflation numbers will also be announced on Monday during market hours.”
Next week we will see a listing of Policy Bazaar and Sigachi on Monday while Paytm will debut secondary market on 18th November. Tarsons products and Go Fashion, two new IPOs will also open for subscription next week.
Vinod Nair, Head of Research at Geojit Financial Services said during the week, the global markets remained highly volatile as inflation fears elevated.
“The US inflation hit a 30-year high level of 6.2% YoY adding fears for an earlier than expected rate hike. The domestic market also followed this trend, however, the momentum regained at the end of the week due to sectors in the market which are least impacted by inflation like IT & others, and volume growth, reforms, supportive monetary policy, good quarterly earnings and strong domestic macro data points.”
The domestic investors are awaiting the release of inflation data which is expected in the coming days, Nair added, saying CPI inflation for October is forecasted to remain close to the previous month’s level of 4.35% while WPI inflation may increase from the September level of 10.66%.
Similarly, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd., also stated rising global inflation remains a concern.
“With the 2QFY22 results season coming towards the end, investor focus will shift towards macro developments. Going ahead, inflation, oil prices, FII flows, and Central Bank policies are some of the key factors directing the markets,” said Chouhan.