Markets May Continue To Consolidate Next Week

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Benchmark indices may continue to consolidate next week after indices gained more than one per cent this week. It was a topsy turvy week with the Sensex losing heavy ground on Tuesday as North Korea fired a missile over Japan. However, markets recovered all of the losses in the remaining three days of trade to end the week comfortably higher.

Markets May Continue To Consolidate Next Week
The solid gains continued largely on account of the heavy inflow of mutual funds into stocks. In fact, Foreign Portfolio Investors have been selling heavily, while mutual funds and domestic institutions have been buying. The week also saw some volatility in the Infosys stock after reports that Nandan Nilekani would be the Chairman of the company. While initially, the markets reacted positively, they later did give-up some gains towards the end of the week.

Shares in Tata Motors also jumped in the last 30 minutes of trade on Friday, after domestic sales surged 26 per cent.

The markets completely discounted poor GDP numbers as liquidity into mutual funds saw them continuing to buy into shares. Markets in all probability would continue to consolidate and it is likely that we would see the markets rallying. Tensions with North Korea would remain the key to sustain the market momentum, as also FPI inflows. Interestingly, FPIs have pulled out a staggering Rs 15,000 crores this month, though the market has been well supported by domestic institutions.

GoodReturns.in

Read more about: sensex, nifty
Story first published: Saturday, September 2, 2017, 6:56 [IST]
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