Markets to remain volatile on global cues

“We expect the Monday market opening to be on a positive note. However, the market would remain choppy for the rest of the week as it needs a breather after eight weeks of gains,” Bonanza Portfolio Assistant Vice-President, Research Equity, Avinash Gupta said.

Foreign investors

Marketmen said firm global cues and higher capital inflow from the overseas investors on the back of strong rupee will keep the market somewhat in the green, though profit booking may emerge at higher level.

“The markets would be volatile during the week. FIIs are bullish about the Indian markets and the inflow will continue in the stock market,” Geojit BNP Paribas Financial Services Research Head Alex Mathews said. Over the week, the Bombay Stock Exchange’s (BSE) 30-share index Sensex gained 0.27 per cent to settle at 17,692.62 points, stretching the weekly gaining streak to eight on the back of sustained buying by FIIs since early February.

“Risk appetite is coming back in the Indian stock markets as FIIs are gradually investing in equities. If the buying spree continues, the market will move ahead in coming trades,” he added.

Foreign funds have put in over Rs 20,600 crore around $4.54 billion in the Indian stock market so far this year, with a majority of the chunk coming in the last month.

Analysts cautioned that markets may witness some selling pressure during the coming period and in absence of domestic trigger, Indian shares would follow global cues.

Over the week, Indian currency has further strengthened against the greenback and touched a near 19-month high of Rs 44.89/90 against a dollar.

Sectors to watch

Sectors such as banking and metals will be in demand, analysts said. Although IT stocks are expected to trade in range ahead of the bellwether Infosys’ result due next week.

“The markets have been range bound for past few trades. It is expected to be in a range with a downward bias,” SMC Capitals Equity Head Jagannathan Thunuguntla said.

Over the weekend, the global markets closed firm with Dow Jones Industrial Average settling higher by 0.65 per cent to 10,927.07 and S&P 500 ending up by 0.74 per cent to 1,178.10.