RBI policy, global trends to drive markets in holiday-shortened week: Analysts

Macroeconomic knowledge, auto gross sales numbers and the RBI coverage to be launched this week could be among the many driving components for inventory markets within the holiday-shortened week, say analysts.

Stock markets would stay closed on Monday for ‘Gurunanak Jayanti’.

“Going ahead, the overall structure of the market remains positive, but intermittent profit-booking cannot be ruled out given the sharp rally in the past few weeks. Globally, investors would watch out for Joe Biden transition and developments over stimulus announcement from the new US government.

“On the domestic side, market would react to the better-than-expected September quarter GDP data. Auto companies would be in focus as November sales data would start coming from Tuesday. Banks and financial stocks would be in focus as RBI’s monetary policy is scheduled on Friday,” mentioned Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

India’s financial system recovered quicker than anticipated within the September quarter as a pick-up in manufacturing helped GDP clock a decrease contraction of seven.5 per cent and held out hopes for additional enchancment on client demand bouncing again.

Vinod Nair, Head of Research at Geojit Financial providers mentioned, “Markets are awaiting outcome of major events like RBI policy meeting, release of manufacturing and services PMI data which will be decisive factors this week.” During the final week, the Sensex superior 267.47 factors or 0.60 per cent.

“RBI’s MPC meeting is scheduled this week. Markets are expected to enter a holiday mood with no major directional move in the weeks to come,” mentioned Nirali Shah, Senior Research Analyst, Samco Securities.

“Markets will first react to the GDP numbers. Besides, auto sales numbers and upcoming RBI policy meet would be on their radar,” Ajit Mishra, VP – Research, Religare Broking Ltd mentioned.

Participants would additionally monitor improvement associated to coronavirus vaccine. PTI SUM MR MR