InvestorQ : Hi Diksha, what is your market view for the 08 Feb 2021, Monday? Do you see further higher levels on Nifty and Sensex or do you see correction?
prachi Patwardhan made post

Hi Diksha, what is your market view for the 08 Feb 2021, Monday? Do you see further higher levels on Nifty and Sensex or do you see correction?

Answer
image
diksha shah answered.
5 months ago
Follow

Indian markets are just coming off an exciting and action packed week. The previous week had the Union Budget, and a tremendous budget at that. It also had the monetary policy that underlined accommodation all over again. In short all the positive triggers for the markets are there and the response is already visible in the 4,300 points rally.

However, the hopes and expectations around the budget and the monetary policy also resulted in volatility touching the 27 levels before tapering to 24. That still needs to moderate to give comfort to markets.. With volatility behind, the VIX is expected to taper closer to 20 and the coming week could be a lot more decisive in terms of market trend.

Quarterly results for the Dec-20 quarter announced till data continue to remain robust with most companies positively surprising on the bottom line. That was largely on the strength of cost control measures and better inventory management. The top line is yet to move significantly and that could be the big challenge going ahead.

Yes, foreign investors were back in the week after the lull of the last week of January. FPIs were net buyers to the tune of Rs.1,462 crore on Friday even as the DFIs sold Rs.1,419 crore worth of equities. FPIs have now infused Rs.12,700 crore into Indian stocks in the previous week in a sharp turnaround from the sharp fall of January last week.

Global markets are not giving very clear signals for Monday. On Friday, the Dow and the NASDAQ were mildly in the positive but European markets like FTSE, CAC and DAX were more mixed. The SGX Nifty is above the 15,000 mark in early trades on Monday and that level has to be held for the indices to now take the next step.

In a nutshell, the Union Budget and the monetary policy have given the space for industry to grow from a policy perspective. The onus is on the corporates to take the initiative, which is already happening. Hopefully, the Mar-21 quarter should also see adequate growth in top-lines and that would be a signal that the markets are treading the growth path.

4 Views