Indian stock markets are set to rally next week, taking cues from a solid payrolls job number in the US, which propelled the S&P 500 to a new record.
The solid payrolls number of 287,000 in the US, took most analysts by surprise and boosted European and US markets and raised hopes of solid growth in the US.
The Sensex which ended the week almost flat, is set to rally next week, given the solid cues from the US and Europe.
There are not too many cues, but, Infosys would kickstart the earnings season on July 15. We have been seeing blockbuster numbers from Infosys and this time we may not see that happen. The company has already sounded a warning.
However, if Infosys does surprise, it could boost market sentiments for IT stocks, which have already been hurt by reports of a Brexit.
The one sector that has given superb gains for investors in the last 1 month is the PSU banking space. Some stocks like Oriental Bank of Commerce and Bank of India have rallied 20-30 per cent. Dealers say there maybe even more upside in these stocks.
In other asset classes, bond yields had a solid run as the monsoons were better than expectations. The rupee ended the weak almost little changed, while gold had a solid run with the metal hitting a new peak of Rs 32,400.