Adversitement
Domestic Markets Set to Open Flat on Monday Amid Global Uncertainty
Published On : 2024-03-11T08:48:48+0530 [ IST ] |
Author : Mayur_Tembhare
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India :
As domestic markets gear up to kickstart the trading week on Monday, investors are bracing for a flat opening amidst a backdrop of mixed global cues. While Nifty futures at Gift City suggest a potential gap-up opening, the broader sentiment remains subdued as most Asian equities grapple with downward pressure.
Analysts emphasize the pivotal role of overseas markets, particularly the behavior of foreign portfolio investors (FPIs), in shaping the trajectory of domestic markets. The lack of significant domestic cues prompts market participants to closely monitor global trends for directional guidance.
Manoj Purohit, Partner and leader—FS Tax, Tax and Regulatory Services, BDO India, highlights the positive trend in FPI inflows, attributing it to factors such as the recent announcement of Q3 GDP numbers and the sustained performance of large Indian corporates. Regulatory developments, including the removal of UAE from the grey list and SEBI's consultation paper on easing UBO disclosures norms for regulated FPIs, further bolster India's appeal as a destination for long-term investments.
Against the backdrop of last Friday's weak close in US stocks, Asian markets exhibit mixed performance, with Japanese stocks witnessing a decline of over 2 percent and Australian equities weakening by about 1.5 percent. However, Chinese markets buck the trend, with Hong Kong and Chinese stocks recording gains despite marginal declines in Korean stocks.
Ajit Mishra, SVP—Technical Research, Religare Broking Ltd, underscores the significance of global indices in providing cues for market direction, especially amidst profit-taking in US markets following a prolonged uptrend. This could introduce intermediate volatility in domestic markets, particularly at the open.
Arvinder Singh Nanda, Senior Vice President of Master Capital Services, outlines key factors influencing market outlook, including major global and domestic economic data releases, US Fed rate decisions, investors" target="_blank">institutional investors' investment patterns, global market trends, currency movements, crude oil inventories, and upcoming general elections. The week ahead will witness a keen focus on economic indicators such as Japan's and the UK's GDP, the UK unemployment rate, US CPI inflation numbers, and India's CPI and WPI inflation figures, industrial production, and manufacturing output.
As investors navigate through uncertainties stemming from global developments and macroeconomic indicators, the resilience of domestic markets hinges on a nuanced understanding of both domestic and international factors shaping market dynamics.
Source : Business Line
Tags : Foreign Portfolio Investors , FPI inflows , macroeconomic data , Asian equities , global cues , Domestic markets , overseas markets , volatility. , regulatory announcements , US markets , Nifty futures ,
Summary : Domestic markets are poised for a flat opening on Monday, with investors awaiting cues from mixed global trends. While Nifty futures at Gift City indicate a gap-up opening, most Asian equities are facing downward pressure. Analysts highlight the significance of overseas markets, particularly the behavior of foreign portfolio investors, in guiding market direction. Positive factors such as FPI inflows, regulatory announcements, and robust corporate performance in India are expected to mitigate uncertainties. However, global factors like profit-taking in US markets and scheduled macroeconomic data releases may introduce volatility in the near term.
Adversitement