GDP, PMI data, auto sales, global trends to dictate Indian markets in week ahead
On Friday, Sensex closed at 62,501.69 up by 629.07 points or 1.02%. While Nifty 50 ended at 18,499.35 up by 178.20 points or 0.97%. Broad-based buying was seen across the indices.
However, from May 22nd to 26th trading week, Sensex jumped by 588.13 points or 0.95%, on the contrary, Nifty 50 surpassed with gains of 248.75 points or 1.36%.
Also, both foreign institutional investors and domestic institutional investors were buyers throughout the week. FIIs bought ₹3,230.49 crore worth of equities, while DIIs surpass foreign investors with an inflow of ₹3,482.21 crore.
On the weekly performance, Ajit Mishra, VP of Research, Religare Broking said, “Markets ended a 2-week long consolidation phase and gained over one and a half percent. After a firm start, the benchmark remained range bound in the middle, tracking mixed global cues however strong recovery in the final sessions changed the tone. Consequently, Nifty managed to surpass the hurdle at 18,400 and settled around the week’s high at 18,499.30 levels.”
He added, “All sectors contributed to the move wherein metal, pharma and IT were the top gainers. The buoyancy continued on the broader front, with the midcap index scaling to a new high.”
In the week ahead, which would be from May 29th to June 2nd, auto stocks and metal stocks will be focused due to their monthly performance data. Further, a host of economic data awaits alongside global trends.
According to Mishra, the coming week marks the beginning of the new month also so participants will be eyeing high-frequency data viz. auto sales, manufacturing PMI, and services PMI data. Before that, the GDP data, scheduled on May 31, will also be on their radar. Apart from these factors, the performance of the US markets amid the ongoing debt ceiling talks will be in focus.
A few companies are also set to announce their Q4 results. He said, “As we are entering into the last leg of the earnings season, we have companies like Aurobindo Pharma, Apollo Hospitals, Adani Ports, IRCTC, and PFC, who will be announcing their numbers during the week.”
Also, Vedanta, ITC, SBI, Shree Cements, Trident, Havells India, IndusInd Bank, Infosys, JSW Energy, Mahindra CIE, and Anand Rathi are some of the stocks that will turn ex-dividend in the week ahead.
The primary market will also see a busy week with SME initial public offers (IPO). Companies like Infollion Research Services Ltd, CFF Fluid Control Ltd, and Comrade Appliances Ltd will open for subscription this week.
Religare’s expert believes Nifty looks set for a new high after the consolidation breakout, thanks to improved participation from across sectors. However, stability on the global front would be critical else the momentum could derail. On the downside, the 18,050-18,200 zone would offer the support, in case of any dip.
He added, “Though we are seeing broad-based buying, the focus should remain on identifying the leaders from the respective sectors instead of adding laggards in the hope of recovery.”
Meanwhile, Amol Athawale, Technical Analyst (VP), Kotak Securities said, the short-term market outlook is considered robust, with key levels at 18350/62000 acting as trend deciders. If the index moves above these levels, it could rise towards 18600/62800 and potentially continue further to 18680/63000. Conversely, if the index falls below 18350/62000, traders may prefer to exit their long positions.
Lastly, in regard to GDP, Vinod Nair, Head of Research at Geojit Financial Services said, “With the upcoming Q4 GDP data, it is anticipated that India’s FY23 GDP will surpass the earlier projected 7.0% growth rate, thereby improving the overall outlook of the Indian economy.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
Updated: 27 May 2023, 04:38 PM IST
