Mumbai : Trends in the Chinese indices, coupled with domestic macro-economic data and a rebound in crude oil prices, are expected to guide the Indian equity markets during the upcoming week.
Even the last of the domestic quarterly earning results, the rupee’s trajectory and the interest of foreign investors will give vital cues to the next moves of the markets, reports IANS.
The Chinese stock markets will open after a week’s holiday on account of the Chinese New Year celebrations. The Chinese mainland stock markets were closed from February 8-12.
“The most important thing global markets would wait for very eagerly next week is how financial markets in China open,” Pankaj Sharma, head of equities for Equirus Securities, said.
“That would reflect the confidence investors show in the future of Chinese economy after so much global turbulence this week.”
“With US markets ending in the green on Friday, we may see some short term recovery in the markets on Monday,” Vaibhav Agarwal, vice president and research head at Angel Broking, told IANS.
“However, the trend continues to remain negative and we may see the markets drift lower in the coming days.” According to Agarwal, a key trigger could be a strong growth-oriented union budget, which allows the central government to maintain its fiscal deficit targets.
Market participants are hopeful that the central government may increase expenditure, announce tax concessions and pave the way to reduce the NPAs levels of the banking sector.
Analysts added that hopes of an upward movement will give investors some reprieve after last week’s bloodbath at the equity markets. Poor earnings results and negative global cues had dragged the domestic equity markets to their lowest levels in over 21 months. Markets declined for four consecutive sessions to post their biggest weekly loss since July, 2009.
Despite some recovery on Friday due to short-covering, both the bellwether indices ended the week below the psychologically important levels of 23,000 and 7,000-point marks.
