The upcoming RBI policy review and release of macroeconomic data will decide which way stocks will move in a holiday-shortened week ahead, say experts. The exchanges will be shut on Tuesday for Ram Navami.
"Several macroeconomic data like services PMI and manufacturing PMI are expected, which could give direction regarding the move on either side. The most important event, RBI policy, is also due. Overall, we believe the market to trade with volatility this week," said Abnish Kumar Sudhanshu, Director and Research Head, Amrapali Aadya Trading and Investments. On the macro front, PMI data on manufacturing and services sectors will also have a bearing, experts added.
"A spate of economic data are lined up globally and domestically. But all that data may not have an impact on our markets. But markets would position themselves ahead of the two-day RBI meet on Wednesday and Thursday," said V K Sharma, Head - PCG (Private Client Group) HDFC Securities.
"Rupee movement against the dollar and outcome of RBI's monetary policy will dictate sentiment in the truncated trading week ahead," said Vijay Singhania, Founder-Director, Trade Smart Online.
“All indications are in the favour of positive bias to hold in the coming week as well; however, volatility, especially in the rate sensitive pack, will remain high. Next, we’re eyeing 9300 in the Nity but traders are advised to maintain caution on leveraged front and suggest preferring hedged positions. We feel midcap and smallcap still have a lot to offer and slight extra efforts on selection part could yield phenomenal returns,” said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
The annual results season will start in a week’s time, until then the market is expected to remain in sideways zone. Investors should remain invested and traders should buy on decline with strict stops,” said Jimeet Modi, CEO, SAMCO Securities
Auto stocks will also remain in focus on Monday amid March sales data announcement. Over the last week, the Sensex climbed 199.10 points, or 0.67%, while the Nifty gained 65.75 points, or 0.72%.
FPI inflows at record Rs 57,000 cr in March on reforms buzz
Foreign investors pumped in a record Rs 57,000 crore in Indian capital markets in March, buoyed by expectations that BJP's victory in assembly polls is a precursor to more "bold, reformist policies". With the latest funds mobilisation, net investment by FPIs in the capital markets -- equity and debt -- reached a little over Rs 49,000 crore in 2016-17. In the just-concluded fiscal, FPIs invested a net sum of over Rs 56,000 crore in equities while they pulled out Rs 7,000 crore from the debt market.