New Delhi
In the upcoming data-centric week, market focus will be on crucial releases, including inflation data from India and the US, according to Vinod Nair, Head of Research at Geojit Financial Services. Anticipated increases in Indian inflation and steady US inflation will be closely watched. Additionally, Indian industrial and manufacturing production data is expected, with consensus predicting expansion. However, the outcome of the eagerly awaited Federal Reserve policy meeting will play a pivotal role in shaping market sentiments, Nair stated. The Indian market achieved an all-time high, propelled by robust domestic GDP growth. Despite the RBI maintaining the policy status quo, an upgraded GDP growth forecast for FY24 (6.5 per cent to 7 per cent) bolstered investor confidence. Measures addressing the liquidity deficit, including the reversal of SDF & MDF facilities, positively impacted financials, leading to a 5 per cent gain in Nifty Bank for the week, he added. IT, consumer, auto, and realty sectors performed well due to valuation comfort, festive momentum, and a strong uptick in residential sales. Mid & small-caps continued to outperform, driven by a healthy economic outlook, strong Q2 earnings, and corrections in oil prices, Nair explained. Amol Athawale, Vice President – Technical Research, Kotak Securities, highlighted the stellar rally in the benchmark indices during the previous week. The Nifty ended with a 3.47 per cent gain, while the Sensex gained over 2,340 points. Energy index outperformed, rallying nearly 8 per cent. Both Nifty and Sensex successfully surpassed important resistance levels, intensifying positive momentum post-breakout, Athawale concluded.
