Stock markets may remain volatile this week; Re, FII trend key
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Stock markets may remain volatile this week; Re, FII trend key

Last Updated: Sunday, September 01, 2013, 10:55
 
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Stock markets may remain volatile this week; Re, FII trend key
New Delhi: Stocks markets are likely to remain volatile this week and movement of rupee, foreign fund trend would continue to drive equities, say experts.

Besides, auto and cement stocks would be in focus as the companies from these sectors would announce their monthly sales data for August.

"Nifty witnessed a highly volatile session on Friday, however, finally closed on a positive note and well above 5,450 level.

"This is positive for near-term, however Nifty must sustain above 5,500 for few more sessions for further rally to continue," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

He further added that weekly chart indicates bullish candlestick pattern, however its confirmation will be reached only if Nifty closes above 5,530 level.

The rupee got a boost on Friday from the Prime Minister's assurances in Parliament on combating the currency's fall and reviving economic growth, after which the currency closed at 65.70 against the US dollar.

Prime Minister Minister Manmohan Singh said on Friday: "Sudden decline in exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing reforms."

At the same time, he had said, "to some extent depreciation can be good for the economy as this will help to increase our export competitiveness and discourage imports."

Overseas investors have pulled out over Rs 2,000 crore from the Indian stock market last week.

Markets may react on Monday, to the economic growth data that was announced post market hours on Friday.

Economic growth in the April-June quarter slid to 4.4 percent. The country's gross domestic product (GDP) had expanded by 5.4 percent in the April-June quarter of the last fiscal. On a sequential basis, the growth rate declined from 4.8 percent in the January-March period of 2012-13.

Marketmen would watch out for any fresh measures with Raghuram Rajan taking over the reins of RBI as the new governor on September 5.

Besides, investors would also watch if diesel prices have increased after the monsoon session of Parliament ends this week.

Meanwhile, receding fears of an attack on Syria after British lawmakers voted against military action, which had kept global oil prices under pressure, has aided domestic sentiments.

The benchmark Sensex ended the week with a gain of 0.54 percent at 18,619.72.

PTI



First Published: Sunday, September 01, 2013, 10:55


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