Global trends to guide markets in holiday-shortened week: Analysts

By: |
September 05, 2021 11:01 AM

The Sensex took just three sessions to go from the 57,000-level to 58,000 last week while the BSE benchmark soared over 9 per cent last month.

Markets would also track movement in the rupee, Brent crude and foreign institutional investments.

The stock market is likely to continue with its positive momentum but may face bouts of profit-booking amid lofty valuations in this holiday-shortened week, analysts said.

The trading sentiment will be guided mostly by global trends in absence of major domestic events, they said. Markets would remain closed on Friday for ‘Ganesh Chaturthi’.

Industrial production data is scheduled to be released on Friday, which happens to be a trading holiday.

The BSE 30-share benchmark zoomed 2,005.23 points or 3.57 per cent last week. The benchmark scaled the 58,000-mark for the first time on Friday to close at its lifetime high of 58,129.95.

The Sensex took just three sessions to go from the 57,000-level to 58,000 last week while the BSE benchmark soared over 9 per cent last month.

The benchmark index has gained 10,378.62 points or 21.73 per cent so far this year.

“Going ahead, market is likely to continue with its positive momentum as economic recovery and vaccination continues their northward journey. Strong liquidity and positive global cues are likely to support domestic markets to continue their movements to record levels.

“However valuations are also moving beyond comfort zones and hence could lead to bouts of profit-booking and increase in volatility,” said Siddhartha Khemka, Head – Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd.

“We are going to have a truncated week as the markets will remain closed on Friday on the occasion of Ganesh Chaturthi,” Santosh Meena, Head of Research, Swastika Investmart Ltd said.

“Domestically, economic data such as manufacturing output and industrial production could drive investor sentiment this week. In absence of any other major event, Indian indices are expected to mirror global cues and move in tandem with foreign bourses,” Samco Securities Research said in a note.

Markets would also track movement in the rupee, Brent crude and foreign institutional investments.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Aditya Birla Sun Life AMC IPO opens next week; check price band, grey market premium, bid details, issue size
2Gold prices may fall further next week, MCX silver at fresh low of 2021; here’s what charts say
3Sansera Engineering stock lists at 9% premium to IPO price; shares price crosses Rs 800 on D-St debut