Markets ended the week with gains of near one per cent for the Nifty with software stocks being in the limelight. Shares in select companies like HCL Tech fell sharply with the company sounding a profit warning, while much of the gains this week came in stocks like Infosys and TCS.
Pharma led by Lupin and Sun also managed to show some gains. Indian stock markets witnessed a truncated week with markets closed on Friday on account of Gandhi Jayanthi.
Attention is likely to focus on the earnings season in the next few weeks. Earnings are expected to be tepid from the manufacturing sector. All eyes would also be on the banking sector for clues on whether things are improving on the non performing asset front.
Crucial for market movement would be investment by Foreign Portfolio Investors in the market. It is the first time that net capital flows have been negative by investors since 1988. This is certainly dangerous for emerging markets. According to reports there have been heavy redemption pressure by investors in the Gulf, especially since prices have fallen.
Global cues would also remain paramount and any jitters from China could not be good news for the Indian markets.