Markets Next Week: Global Cues Would Remain Key

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It was a good week for the markets which edged higher, even as domestic institutions continued to pump large amounts of money into the markets and FPIs sold. The Nifty ended the week higher by 1.7 per cent.

Markets Next Week: Global Cues Would Remain Key
The markets have sustained largely on the buying by domestic institutions. However, a good amount of liquidity would be sucked out of the system, through IPOs. The next week would see the opening of the GIC Re IPO, which would make it the third largest IPO after Coal India and Reliance Power.

The Rs 11,732 crores IPO is also expected to suck immense liquidity floating in the markets. A lot of the market movement next week would depend on global cues. The Dow Jones has been on a roll, posting its best winning streak since 2013. This has propelled all of the global markets higher, while India has largely underperformed.

For example, the German DAX is up almost 7 per cent in one month, the Hang Sang is up 4 per cent, the Dow Jones is up almost 5 per cent and almost all of the markets have gained in the last one month. However, the Indian markets have remained almost flat during this period. In fact, they are marginally lower. Worries over economic growth, GST implementation etc., continue to haunt the Indian markets.

The next trigger for our markets would be the forthcoming results season. While the same is expected to be subdued an even weaker than expected performance could result in fresh selling pressure in Indian stocks.

For those planning to invest it would be best to be a little cautious and book profits on every rally.

Read more about: sensex, nifty
Story first published: Saturday, October 7, 2017, 8:23 [IST]
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