NEW DELHI: Even as the stock market started last week on a positive note, it ended up losing about 1% of its value during the week. Nifty closed the Friday session at 15,722.67 while Sensex ended at 52,484.67. “It was probably the dullest week in last fifteen months our markets have experienced. Barring Friday, stock specific moves were also missing throughout this week which was frustrating for momentum traders,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, at Angel Broking.
According to analysts, key factors that may shape market movement this week are Covid-19 cases and vaccination, foreign portfolio investment (FPI), earnings for Q1FY21 and IPOs. “In the medium term, we expect FPI flows to India to remain strong, driven by recovery in growth. Positive export outlook led by a revival in the global economy coupled with low interest rates in the domestic market is expected to augur well for India.
Besides decline in Covid cases and vaccination drive, expectations of increased consumer spending and normal monsoon rainfall is likely to drive the domestic demand. Also, we expect the upcoming festive season to boost the domestic demand,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research, at Kotak Securities.
However, Gaurav Garg, Head of Research at CapitalVia Global Research, said that the emergence of new Covid-19 variant is a worry for the market.“Albeit the central government is working hard to vaccinate the maximum number of people, the rise of the new Delta variant has become a source of concern in recent days, leading traders to book partial profits,” he said.
New Covid-19 variants a concern for traders
key factors that may shape market movement this week are the number of Covid-19 cases and vaccination, foreign portfolio investment (FPI), earnings for Q1FY21 and IPOs