RBI measures and Global cues will drive the markets.
The markets logged the biggest gain in the last two months as the rupee showed some signs of stability, thanks to the measures declared by the new RBI governor Mr. Reghuram Rajan. If we look at the last 30 days, the rupee had fluctuated between 60.77 (on 6th August 2013) and Rs 65.24 to a dollar (6th September 2013). In between, it touched a lifetime low of 68.80 on August 28th, spreading widespread panic regarding the economic prospects of India. The measures announced by the new governor resulted in a rise in banking stocks which was one of the worst performers for the last few months. It has also created a sense of confidence among all the market participants. This was evident from the way market responded to disappointing PMI numbers and various downgrade warnings. The sensex and the Nifty closed at 19,270 and 5,680 with a 651 and 208 points gain mainly led by banking stocks. Overseas investors have invested Rs 2600 crores into the Indian capital markets in the first week of September.
This week, the main drivers could be the IIP, CPI and export/import numbers and further policy measures from the RBI’s side. Crude oil prices and rupee movement will also be closely watched by the participants. Although there is some optimistic climate all around, the main event that may trigger a self off in emerging markets is the US FOMC meeting that’s scheduled on September 18th.
Expect the market to trade in a range of 18,800- 19,600 for the sensex and 5,530 – 5,800 for the Nifty. The week may also see short term traders booking profits.
You may like these posts:
No comments:
Post a Comment