The Indian equity market ended the weekly session on muted note despite managing to rebound from weeks’ low but failed to carry forward the momentum in expiry session. The anticipated trade talks between US-China in G-20 summit signaling trade deal coupled with falling crude oil price ahead of OPEC meet which boosted the sentiment in market to override the market volatility. The Asian market also rebounded from weeks’ low led by commentary from US official ahead of G-20 summit coupled with rate cut expectation from US Fed. However, the European traded mix to unchanged ahead G-20 summit and OPEC meet.
During the week under review, Nifty index formed weekly low of 11635 levels, but managed to rebound the rally to form weekly high of 11911 levels although it didn’t sustain. The Nifty index closed the session at 11841.55 levels with marginal gain of about 0.08% on week-to-week basis. The Nifty index which ended in green on weekly basis were Nifty PSU Banks (on hopes 40k crore recapitalizations in upcoming budget) and Nifty Metal which were up by 3.8% and 2.5% respectively. However, Nifty index which ended in red were Nifty IT and Media which was down by 1.9% and 1.3% respectively in same period.
The Indian equity market is likely to remain volatile with positive bias given a series of events lined up in coming weeks starting from ongoing G-20 summit, OPEC meet, Automobile sales number for June and Union Budget which is likely to set momentum for the market. We expect the market to remain relatively in positive trajectory as expectation from budget to boost the infrastructure sector and increase credit flow remain high. The various incentives for rural based segment through upcoming budget is also likely to boost the consumption sentiment coupled with likelihood of normal monsoon. We also expect sector specific opportunities with rollout of Q1FY20 earnings result from next two weeks which is expected to be positive, says Dinesh Rohira, CEO & Founder, 5nance.com
