Mkt closes lower ahead of retail inflation data. What to expect this week ahead?
Indian stock market started the week on a flat-to-negative note as Sensex closed 0.41% lower to 60,431.8 whereas the Nifty fell 0.48% to 17,770.90, ahead of the domestic retail inflation data due later while an ongoing uncertainty and spill over from the Adani Group’s market rout continued to be an overhang.
“With the Third Quarter Earnings Season coming to a close this week, Markets traded weak throughout the day ahead of the Inflation Print expected today. PSU Banks & IT stocks dragged Indices as traders booked profits on a rather dull day of trade wherein most of the sectoral indices ended in the red. Equity ownership of Retail Investors now stands at a record 24.5% at the end of third quarter even as they remind themselves of rising fixed income rates on dull days like today,” said S Ranganathan, Head of Research at LKP Securities.
Domestic equities succumbed to weakness in global markets as investors’ fret over the Federal Reserve’s stress on the tightening of the monetary policy to tame inflation. Nifty opened lower and traded in negative territory throughout the session to close with loss of 93 points at 17763 levels. All sectorial indices ended in red with PSU Bank, Realty and IT down 1-2% each. Volatility index, India VIX rose by 8% to 13.7 levels.
Week ahead
“We expect market to remain lacklustre as investors await key economic data on global as well as domestic front to provide some clear direction. Domestic CPI data to be announce today post market, while US would release its monthly CPI data on Tuesday along with Europe’s GDP numbers. Auto and Capital goods stocks likely to do well on back of good quarterly results,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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