New Delhi [India], May 26 : The Indian benchmark indices are expected to witness a gradual upward movement in the coming week after the strong performance last week, which closed on a flyer, say market analysts.
Both the Sensex and Nifty concluded Friday's trading day near their all-time highs at 75,410 and 22,957 points respectively.
Meanwhile, the broader indices showed mixed performance, with midcaps gaining about 1 percent while smallcaps ended in the red.
According to the experts, investors will keep an eye on the final phase of elections, global cues, and the final phase of the earnings season in the upcoming week, starting on Monday.
Globally, trends are mixed; the Dow Jones Industrial Average (DJIA) has sharply retreated from its record high, while the tech-heavy NASDAQ and the broader S&P 500 are still showing resilience and inching higher.
In the weekly note, Ajit Mishra, SVP, Research, Religare Broking Ltd., expected the Nifty to move towards the 23,150-23,400 range soon.
"While all key sectors are contributing to the rally, banking and IT still have significant upside potential, and their participation could drive the index to much higher levels, Mishra added.
He further recommends continuing a stock-specific trading approach, with a preference for large-cap and large mid-cap stocks for short-term trades.
Moderating inflation in America and India, and the sooner-than-normal arrival of the southwest monsoon in India, as predicted by IMD, are likely to positively impact the market in the upcoming week.
For the previous three sessions, foreign investors have continued to be net sellers of Indian stocks. Interestingly, domestic institutional investors remained net buyers during that time, more than offsetting the withdrawals made by overseas investors.
In the two week the Sensex has jumped 3,500 points
Analysts believe that market returns are consistent with the previous ten to twenty years. Anticipations are that the market capitalisation of the BSE and NSE would reach USD 10 trillion by 2030, with India projected to become the world's third-largest economy by 2027.
"This is a landmark moment in the Indian capital market as the Sensex crossed all time high of 75,300, all the way up from 24000 when the Prime Minister (PM Modi) took office. The record growth in investor wealth and stock market valuation is supported by strong economic fundamental and progressive government policies," said Vijay Kalantri, President of All India Association of Industries (AIAI) and Chairman MVIRDC World Trade Centre.
Ruchit Jain, Lead Research of 5paisa.com, advised traders to trade with a positive bias and look for buying opportunities on any declines.
"INDIA VIX continues to remain high due to the event (elections results) ahead, but it should start cooling off if the actual event outcome does not deviate much from the expectations, he added.
Dr. Joseph Thomas, Head of Research, Emkay Wealth Management, said, "The indexes closed near flat after a week of volatile trading, treading cautiously ahead of the last leg of the federal elections and the results thereafter. Markets will be under the spell of these fleeting factors till the votes are counted and there is some kind of confirmation on the continuity in the policies.""
"Overall, we expect the market to witness a gradual up-move and see some volatility next week as both the election and earning season are nearing the end, opined Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.
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