Domestic capital to drive the market
Benchmark indices, the Sensex and the Nifty closed 403 points and 110 points higher at 28077 and 8693.
Buoyed by positive global cues during the early part of the week and recovery in rupee against dollar, markets posted biggest weekly gains in seven weeks during the week ended.
Benchmark indices, the Sensex and the Nifty closed 403 points and 110 points higher at 28077 and 8693. Market breadth was good and indicative of the heightened activity in midcap and smallcap space.
It is pertinent to note the statement of emerging markets guru Mark Mobius that India is in a very sweet spot and the rally in midcap and smallcap stocks may extend further on growing signs of interest rates heading down.
Growing pool of domestic capital is beginning to rival FII flows; and going forward they will drive the market, not foreign investors feel observers. Post Roseneft acquisition of Essar Oil, all eyes are on likely sell out candidates from the debt ridden industrial conglomerates.
Track news flow on this front especially from power and steel sectors. For the week ahead, chartists predict trading range of 27600-28500 and 8550-8825 for the benchmark indices.
Support for the indices evident at 27800 & 27600 and 8615 & 8555. Near term trend will be dictated by global cues like US Presidential Elections, ECB Monetary policy review and volatility in US Dollar Index; and domestic cues like clarity on GST rates, geopolitical developments, F&O settlement and rupee movement against dollar.