After clocking moderate gains last week, the overall bias for Indian equities remains positive, but the primary market will see more action as a plethora of companies will hit the market to raise capital, while as many as eight stocks are set to debut on Dalal Street.
Further, macroeconomic data such as consumer price inflation and industrial production will also be tracked by investors.
“The outlook for the market may depend upon major global and domestic economic data, US Fed rate decisions, foreign and domestic institutional investors’ investment patterns, global market trends, rupee movement against the dollar, crude oil inventories, upcoming general elections,” said Arvinder Singh Nanda, senior vice president at Master Capital Services.
Here are the factors that will influence investment decisions in the week ahead.
Among the macro data points, investors will watch out for consumer price inflation for February, and industrial production data for January.
Consumer price inflation is widely expected to ease to a four-month low in February from 5.1% in January. This is largely due to a statistical effect of a high base.
Global Markets
In the absence of any significant domestic triggers, trends in global markets will be closely monitored for cues in early trade by investors.
FII flows
FPIs are steadily turning net buyers in domestic equities as indicated by the inflows worth Rs 11,823 crore so far in March. FPIs were major sellers in January and very modest buyers in February.
“The Indian market is showing great resilience and every dip is getting bought. FPIs have been forced to buy the same shares which they sold at higher prices, which is a losing game,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
These positive developments and the sustained flow of funds into the market – both directly and through institutions – can keep the market resilient, he said.
IPO Watch
The week ahead is set to be super busy for investors as seven initial public offers (IPOs) will hit the primary market for subscription, of which, two are mainboard issues. Besides, eight stocks will debut on Dalal Street.Popular Vehicles and Krystal Integrated are the two mainboard IPOs that will open for subscription this week, while the four SME IPOs are Pratham EPC, Signoria Creation, Royal Sense, and AVP Infracon.
In the mainboard, RK Swamy Ltd, JG Chemicals and Gopal Snacks will debut on Dalal Street this week.
Technical Indicators
The Nifty 50 has formed a Doji candle on the daily charts as it stayed below the psychologically crucial 22,500 mark, with call option writers significantly increasing their positions at the 22,500 strike.
The near-term uptrend of the Nifty 50 remains intact. The upside target to be watched during the week is 22,800 levels, while immediate support is at 22,310 levels, said Nagaraj Shetti of HDFC Securities.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
