Market outlook: Stocks to consolidate this week; Infosys results eyedNew Delhi: After a good start to the new year, stocks are expected to consolidate gains this week and investors would take cues from earnings with Infosys kicking off the December-quarter result season on Friday,
New Delhi: After a good start to the new year, stocks are expected to consolidate gains this week and investors would take cues from earnings with Infosys kicking off the December-quarter result season on Friday, say experts.
Global cues, investment trends by overseas investors, the movement of rupee against the dollar and crude oil price would also set the tone on stock bourses, they said.
The benchmark BSE Sensex settled at nearly four-week high of 27,887.90 and NSE Nifty surged to near 8,400 levels last week, logging about two per cent rise. Smallcap and midcap stock indices soared by about four each, outshining largecaps.
“This week would be a crucial one for the markets as it marks the start of earning season, with IT major, Infosys reporting its quarterly results on January 9,” said Religare Securities President-retail distribution Jayant Manglik.
After a indicator last week showed that Indian manufacturing activity expanded at its fastest pace in two years in December, markets are looking forward to the release of HSBC Service PMI data, he said.
Banking stocks would remain in focus amidst hopes of announcement of some positive news at the conclusion of two-day session on Saturday.
Finance Minister Arun Jaitley had on Saturday termed the level of bad assets in the system as “unacceptable” and promised more autonomy for state-run banks.
“We expect the markets to remain sideways this week and within the range of 8,100-8,550 levels (for Nifty) in the medium term,” said Bonanza Portfolio Senior Vice President Rakesh Goyal.
In the global markets, data for UK construction purchasing manager's index (PMI) for December will be unveiled on Monday, followed by the ISM Services PMI data for the US on Tuesday. US nonfarm payrolls and unemployment rate data are also scheduled for release later in the week.