Experts say that after a good start to the New Year, we can expect the stocks to consolidate gains in the week to January 9th, with investors taking cues from earnings with Infosys starting off with the October-December quarter results on 9th January.
The tone on stock bourses is also set by global cues such as investment trends by overseas investors, the movement of rupee against the dollar and crude oil price.
NSE nifty surged to near 8400 levels last week about 2% rise, and the benchmark BSE Sensex settled at 27,887.90, a near 4 week high. Smallcap and midcap stock indices soared by about four each, outshining the largecaps.
Religare Securities president Jayant Manglik said that this is a crucial week for markets as it marks the start of earning season, with the IT major, Infosys reporting its quarterly results on 9th of January.
In the week to January 2, an indicator showed that the expansion in Indian Manufacturing activity happened at fastest pace in 2 years in December. As a result, markets are looking forward to the release of HSBC service PMI data.
Amidst the hopes of announcement of positive news at the end of the 2 day session on Saturday, Banking stocks would remain in focus.
Arun Jaitley, Finance Minister had termed the level of bad assets in the system as â€œunacceptableâ€ and promised state-run banks more autonomy.
Rakesh Goyal, senior vice president of Bonanza Portfolio said that the markets can be expected to remain sideways this week and within the range of 8100 â€“ 8550 levels for Nifty in the medium term.
In the global markets, data for the UK construction purchasing manager’s index (PMI) for December will be unveiled on Monday, followed by the ISM Services PMI data for the US on Tuesday.
US non-farm payrolls and unemployment rate data are also scheduled for release later in the week.