Markets Next Week: IT Results, Inflation Data & Global Cues To Dictate Momentum

Indian markets gained momentum this week despite seeing a truncated trading week. The Sensex and the Nifty both ended higher as global cues lent support.

Domestic indices welcomed RBI's decision to keep interest rate unchanged. On Thursday, the Nifty gained strength after policy outcome and remained in positive territory throughout the session to close with gains of 42 points at 17599 levels. Except FMCG, IT and Consumer Durables, all sectors ended in green. Volatility index, India VIX fell further to 11.8, giving some comfort to traders.

"FIIs have been continuous buyers for last five days to the tune of Rs 4263 crores and their F&O short positions have reduced from 92% to 83%, providing strength to the market. After six consecutive hikes, RBI kept rate unchanged at 6.5%. The decision came in as surprise after majority of the central banks around the world continued to increase rates in an effort to tame stubbornly high inflation. Rate pause and encouraging domestic economic data continues to provide positive undertone to the market," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Range bound movement likely

Going ahead markets are likely to react to inflation numbers on April 12 and Infosys quarterly results on April 13. Forward guidance by Infosys would be important, and could dictate the trend for other IT stocks. The quarterly results of TCS too would be important as the company would declare its numbers on April 12.

Apart from this the markets are likely to take cues from developments from across the globe. "Given the backdrop of global uncertainties and fear of US recession, we might see range bound movement in the near term," adds Khemka.
All in all, the markets may see volatile session going ahead and investors are advised some degree of caution.