Market participants will take cues from domestic inflation prints, dozens of corporate earnings and US economic readings for direction this week. Investors would keenly follow the movement in the dollar index and foreign flow trend. All eyes would be on the IPO by Keystone Realtors.
October Consumer price index (CPI) and wholesale price index (WPI) data are scheduled to be released on November 14. Investors will pay heed to data on balance of trade, passenger vehicles sales (SIAM on November 15), deposit and bank loan growth data and foreign exchange Reserves on November 18.
Keystone Realtors, which sells properties under the brand 'Rustomjee', will open for subscription on November 14 and conclude on November 16. Investors will also keep an eye on some important quarterly results including are Biocon, HUDCO, IRCTC, NBCC (India), NMDC, ONGC, SpiceJet, Grasim Industries on November 14, and Rajesh Exports on November 15.
Devang Mehta, Head of Equity Advisory at Centrum Wealth, said: “The lower-than-expected inflation print in the US triggered a rally across global equity markets. The US dollar also slumped against rival currencies while US bond yields fell sharply, as investors cheered the prospects of less hawkish moves by the US Federal Reserve."
"Though too early to predict, but if the global volatility subsides & if the sentiment improves, India will receive a huge share of foreign institutional investments in addition to already strong domestic flows (SIPs close to 13000 Cr every month),” Mehta said.
Mehta also said, “Our markets have good macros & micros amidst the global dark clouds of high inflation, interest rates & global recession fears. With 4 C’s namely corporate profitability, credit growth, consumption (discretionary & luxury) & capex on a northward trajectory, markets will reward investors who keep the faith and are here for the longer haul".
On the global front, investors will be eyeing few economic data from world’s largest economy, United States (US), starting with Consumer Inflation expectations on November 14, Producer Price Index (PPI) and Redbook on November 15, API crude oil stock change, retail sales, industrial production and EIA crude oil stocks on November 16, initial jobless claims data on November 17, and existing home sales, Baker Hughes Total Rig Count data on November 18.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: "In October FPI investment was almost flat with a small sell figure of Rs 8 crores. FPIs were sellers in the first half of the month but turned buyers in the second half ending with a flat net figure. There is a major change in the FPI activity in November. According to NSDL data FPIs have bought equity worth Rs 18979 crores in November. In fact, they were buyers in all trading days of the month till 11th.”
“There is a clear change in the approach of FPIs since they bought even when the dollar and US bond yields were rising. Now the situation has been more favourable. Since inflation in the US is showing a moderating trend, dollar and US bond yields are declining. This means FPIs are likely to buy more in the coming days. Also, India has the best earnings growth outlook among large economies. However, valuations are getting stretched” Kumar added.
Rupak De, Senior Technical Analyst at LKP Securities has said: " The Nifty remained strong on Friday, following a gap-up start. On the daily chart, the index has moved above the previous consolidation. The trend looks positive as long as the 18,300 level is held on a closing basis. On the higher end, it may move towards 18,600 over the near term. On the lower end, support is pegged at 18,200/18,000".