Inflation data and developments arising from simmering tension between the US and North Korea will guide Indian equities' movement in a holiday-shortened week ahead, say experts.
"Currently, domestic confidence has fallen given Sebi's action over shell companies which impact near-term liquidity. Going ahead, market will take cues from CPI and WPI inflation data. Any escalation of geopolitical tensions will have bearing on the market," said Vinod Nair, Head of Research, Geojit Financial Services.
Stock markets are closed on Tuesday for Independence Day. Coal India, IDBI and Tata Power will announce their earnings on Monday.
"Geopolitical developments will guide our markets in the week ahead," said VK Sharma, Head - Business, Private Client Group, HDFC Securities. Last week, the Sensex and Nifty plunged 1,111.82 points (3.43%) and 355.60 points (3.53%), respectively.
Of late, market has been reeling under pressure after Sebi's directive imposing trading curbs on suspected 331 shell companies and mounting geopolitical tensions between the US and North Korea.
Nine of top 10 most valued firms lose Rs 1,05,357 cr in m-cap
The combined market valuation of nine of the top 10 most valued Indian companies plummeted by Rs 1,05,357 crore last week, with RIL and SBI emerging as the worst hit.
Only Infosys saw rise in its market capitalisation (m- cap), rest nine firms, including TCS, HDFC Bank, ITC and HDFC suffered losses for the week ended Friday.
The m-cap of Reliance Industries Ltd (RIL) plunged Rs 24,671.41 crore to Rs 5,02,922.78 crore. SBI's valuation tumbled Rs 21,407.49 crore to Rs 2,42,258.49 crore and that of ITC tanked Rs 10,882.6 crore to Rs 3,30,560.46 crore.