New Delhi [India], September 11 (ANI): Despite sharp volatility in financial markets globally this week, the Indian stocks managed to close the weekly trade with some gains.
During the week that ended on Friday, the Indian benchmark indices rose over 1 per cent on a cumulative basis.
Brokerage firm HDFC Securities attributed the gains to positive global cues, cooling crude oil prices and consistent foreign fund inflows. IT index gained the most by 3.5 per cent followed by PSU at 2.6 per cent and bank and metal up 2.4 per cent each.
As per provisional figures, foreign institutional investors were net buyers of Rs 6,137crore in the equity markets over the week and domestic institutional investors were net sellers of Rs 352 crore.
“US stocks finished higher in the final session of the week, putting an end to the three-week losing streak. The markets showed resiliency in the face of solidified expectations that the Fed will remain aggressive despite a slowdown in economic growth and following a historic rate hike by the European Central Bank. After three weeks of a temper tantrum, the market has finally come to terms with the expected 75-basis-point increase from the US Federal Reserve this month,” HDFC Securities said.
Back in India the last couple of weeks, the domestic markets maintained their sturdy structure, whereas the US bourses were continuing with their declining trend.
“This development (in the US) was restricting our key indices to surpass the higher boundary of the consolidation range despite having an inherent strength,” Angel One said.
If global peers support, Angel One sees Nifty extending towards 18,200 – 18,350 levels. On Friday, Nifty closed at 17,833 points.
“We advise traders to continue with their recent ‘Buy on declines’ strategy and use decline towards the support zone of 17,675 – 17,500 to add fresh longs. Also, the broader end of the spectrum is clearly on a roll and hence, one should keep focusing on potential movers from the cash segment, which are likely to fetch higher returns,” Angel One added.
Looking ahead, the consumer price index for August in India and the US – which are due on Monday and Tuesday — will be keenly watched by investors.
India’s retail inflation fell to 6.71 per cent in July, the lowest level in five months, helped by an easing in food and oil prices, as per the National Statistical Office (NSO) data.
However, retail inflation has been over the Reserve Bank of India’s upper tolerance band of 6 per cent for the seventh consecutive month. Retail inflation was at 7.01 per cent in June.
Coming to the US inflation data, the rate of inflation in July was 8.5 and 9.1 per cent in June. The June inflation figures were the highest in over four decades.
Also, though the US Federal Reserve has indicated aggressive interest rate hikes to cool off prevailing high inflation, the investors would eagerly await the actual degree of rate hikes when the central bankers meet during September 20-21. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Source: The Print