For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Benchmark Indices Expected To Gain Further Momentum Next Week

|

Benchmark indices saw another spectacular run, with the Nifty breaching the 10,000 points with ease this week. The indices gained more than 6 per cent for the week and may see even higher levels when trading resumes on Monday.

The US markets soared on Friday, after an unexpected surge in U.S. jobs raised hope that the economy is starting to recover from the coronavirus pandemic. In fact, the tech heavy NASDAQ jumped in trade and hit a new record high. The Dow was up 6.8% for the week, while the S&P 500 gained 4.9% and the Nasdaq Composite was up 3.4%.

 

This means that the Indian markets would now react on Monday and it's highly possible that we could see some fresh buying support. The rally in all probability would be led by banking stocks.

Record covid 19 cases a concern

The record number of Covid 19 cases is a matter of concern. In fact, India is seeing Covid 19 cases, hitting new highs everyday. India now has the sixth largest infections in the world and on Saturday, infections totalled nearly 10,000 cases. This might have some bearing on the markets in the coming days.

While European countries and the US are witnessing negligible amount of cases, India is witnessing a steady rise. If the trend continues it might be a dampener for the markets.

Results season almost over

The results season is now almost over. State Bank of India one of the last of the bigwigs to declare its results, reported a good set of numbers, which beat expectations. This might lead to some positive momentum further on Monday in banking stocks.

At the moment, it looks clear that the trend is positive and it is unlikely that the same would be broken. Investors who are looking of holding stocks for a period of 3-5 years are likely to benefit. While corporate results would be bad for FY 2020-21, there could be solid growth in 2021-22, which should augur well for those willing to hold onto shares for a couple of years.

In the next few weeks, global cues would assume significance. The world markets are also seeing a strong rally, especially the European markets. In fact, the German markets are just a few per centage points away from hitting record highs.

 

The global momentum is also unlikely to change anytime soon. As for those who missed the strong rally, it would be advisable to buy on dips.

Benchmark Indices Expected To Gain Further Momentum Next Week
Read more about: sensex nifty
Story first published: Sunday, June 7, 2020, 10:37 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
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