Global equity markets remained upbeat last week, with Indian markets celebrating the RBI’s decision to hold the repo rate unchanged at its April 6 meeting. With this favourable surprise move and the return of foreign institutional investors to Indian stocks, the Indian benchmark indexes Sensex and Nifty surged 1.4% in the previous week, while the Nifty Midcap index and Nifty Bank rose more than 1% apiece.
In another holiday-shortened week for Indian markets, investors will be watching for corporate results, inflation data, FOMC Minutes, and other global and local news flows. On Friday, April 14, Indian markets will be closed in observance of Dr. Babasaheb Ambedkar Jayanti.
“Given the upside horizon on domestic growth and a stable financial market, India is expected to have an edge in the performance of equities going forward. We can expect FII inflows to prosper going forward,” said Vinod Nair, Head of Research at Geojit Financial services.
The Nifty ended higher for the second week in a row, up 1.38% for the week. It has capitalised on the previous week’s gains, aided by bullish global signals. The Nifty has closed above the March 10 downgap at 17,574. According to Deepak Jasani of HDFC Securities, the Nifty might climb further into 17800 in the coming sessions, while 17428 could provide support.