Markets Next Week: China Interest Rate Cut To Propel Sensex Further

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Indian markets closed for the 4th straight week with gains as positive news flows kept the momentum going. This week the push was on the back of comments from Mario Draghi, the European Central Bank President who hinted at more stimulus.

    "We are ready to act if needed, we are open to a whole menu of monetary policy instruments," he said. This fueled a global rally led by the European bourses.

    Markets Next Week: China Interest Rate Cut To Propel Sensex Further
    Indian markets also rallied on Friday joining the global rally. The Sensex ended the week with gains of 1%, though it under performed some of its global peers.
     

    Late on Friday after the Indian and Chinese markets were closed, the People's Bank of China cut lending and deposit rates. It also cut the deposit per centage that banks have to keep with it. These measures were to spur growth and fueled another rally on the US and European markets. Indian and Chinese markets were closed and would likely react on Monday morning.

    So, another small rally is expected early next week.

    In other developments the results season was a mixed bag this week. Q2 Numbers from HDFC Bank and Bajaj Auto were excellent, while Asian Paints and Idea Cellular Q2 numbers were a disappointment. Wipro met street estimates, while its guidance left the street a little disappointed.

    Individual stocks would continue to react to their results next week. All eyes would be on the biggies like L&T, ICICI Bank and HDFC. The latter is expected to show a consistent growth, while it's difficult to predict results of L&T and ICICI Bank.

    All in all, it maybe a good time to sell on rally. This is because data from domestic institutions and FIIs suggest that there is no aggressive buying. FIIs bought marginally on Friday, but had sold marginally on Wednesday (markets were closed on Thursday). Domestic institutions have been selling on every rally as data shows net sales for them through the week.

     

    So, if you get a chance to sell on a rally, it maybe a good idea.

    GoodReturns.in

    Read more about: hdfc bank icici bank sensex nifty
    Story first published: Saturday, October 24, 2015, 9:41 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more