Markets Next Week: RBI MPC Meet, Earnings To Provide Direction

With just 3 sessions of trading in the week to April 2, 2021, Indian indices logged substantial gains of over 2% with Sensex again above 50000 mark and Nifty notching levels over 14860 points. Also, there was shown a remarkable rally in the broader markets with nifty Midcap 100 spurting by over 1.79% on the last trading session of the week alone.

Markets Next Week: RBI MPC Meet, Earnings To Provide Direction

Sectorally, the biggest gains were seen in the metal index pack which added nearly 5% on April 1, 2021 alone.

During the week gone by, FIIs continued to sell in Indian equities in the cash market and pulled out Rs. 700 crore, though at a reduced pace than last week

The market sentiment got a lift owing to the release of the US infrastructure investment plan amounting to multi-trillion dollar as well as all time high GST collection for March month. This was even when the rising coronavirus cases globally as well as in India lent some nervousness. Nonetheless most equity experts are of the opinion this time the impact of rising coronavirus shall not be pronounced given the pace of vaccination.

Markets next week will be guided by RBI MPC Meet and quarterly earnings

Now after a retreat in US treasury yield to below 1.7% which imparted some strength to the markets, interest-rate sensitive sectors such as auto, realty, banking will have an impact of the RBI's first MPC outcome for the FY22 scheduled for April 7 and then there will be quarterly announcement which are expected to come in better owing to the pace at which the Indian economy had shown resilience post the Covid led slump.

In the views of Rusmik Oza, Executive Vice President, Head of Fundamental Research, Kotak Securities, the rally this week has been broad based with nearly 49 stocks from Nifty-50 are showing positive gains. US markets have remained flattish this week because of further rise in bond yields. The Nifty-50 has once again bounced above the 50 DMA which is a good sign. There is a golden crossover in the Nifty Mid Cap 100 Index wherein the 50 WMA has gone above the 200 WMA which signals long term bullish trend.
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