Global push, local cues to accelerate equities rise
Fast paced economic recovery along with healthy earnings results are expected to accelerate the rise of India's main benchmark equity indices during the upcoming trade week
Fast paced economic recovery along with healthy earnings results are expected to accelerate the rise of India's main benchmark equity indices during the upcoming trade week.
Besides, analysts opined that positive global cues such as an early outcome of the US Presidential elections will buoy sentiments.
On the domestic front, healthy reading in high frequency data on factory output data, along with better than expected quarterly results with a rise in auto sales volume and robust GST collection will continue to support the upward trajectory.
"The overall structure of the market remains positive. With the economic activity recovering fast, more earnings upgrade cannot be ruled out," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"Further strong global markets can keep the liquidity abundant in the system, thus providing support to the overall market." In terms of the US Presidential election, Deepak Jasani- Head of Retail Research at HDFC Securities pointed out the process was still unresolved going into the weekend, but even "if Biden is declared winner, close votes and lawsuits are likely to result in recounts".
"Technically apart from positive global cues and FPI flows, the local corporate results give one more reason to cheer going into key festival week," Jasani said.
"Nifty is just 167 points away from its all-time high. Though it does not seem difficult at all going by the momentum seen over the last few days, global markets show signs of slowing down. However Q2 results from Indian corporates may lead Indian markets to outperform for some time."