India’s stock markets are expected to witness another round of upswing as PSUs along with FMCG (Fast Moving Consumer Goods) stocks continue to attract buyers. Accordingly, market observers contend that rising foreign fund inflows along with better-than-expected macroeconomic figures will give a further push to the domestic market, which has already reached record levels.
Last week, foreign institutional investors pumped in over Rs 15,000 crore into the equity markets. The inflow not just lifted equities but also swelled the Reserve Bank's forex reserves. India's key domestic indices namely BSE Sensex and NSE Nifty50, closed last week on record-high levels. However, analysts opined that high valuations and chances of profit booking might cap overall gains. "Nifty continues to recover from intraday lows suggesting bottom fishing by traders or investors. However, it also keeps facing resistance at higher levels," said Deepak Jasani, Head of Retail Research at HDFC Securities. "Nifty could continue its uptrend for the coming week with some intermittent sell-offs. PSU, FMCG and IT indices could do well."
According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: "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." "The market may however consolidate at these levels for some time given the stalemate in US stimulus and concerns over probable no-deal Brexit talk." In terms of global outlook, they said crucial US Fed, BoE and BoJ meets to review interest rates will impact the international as well as domestic markets.
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