Green week for market

The Indian market can expect a positive start to the week with the equity indices showing a continuous strength and is likely to continue in today's trade too.

There are no signs that the bulls are going down on their momentum with frontline equity indices already trading at six months high. As per the early indication from SGX Nifty, the market is likely to open on a strong note with the bulls continuing their dominance and bounce. At 7:40 am, SGX Nifty was trading up by 66.50 points at 11,748.

Owing to the change in the stance of the US Fed, there seems to be a global risk-on trade that will back the Indian equities, which may result in higher levels at indices in the coming week. The RBI Governor's positive sentiment on Thursday, where he said they have not exhausted the policy options, will serve as an added boost.

The release of the first quarter of the FY21 GDP number will be closely watched, as it will indicate the damage done to the economy during the lockdown. Economists are expecting a contraction of around 20 per cent. Any positive surprise will give a further boost to the market.    

Asian markets were trading in the green on Monday after taking positive cues from Wall Street in the last trading session of the week.  Japan's Nikkei 225 is performing best as it is up by 1.83 per cent followed by Hong Kong's Hang Seng and China's Shanghai Composite.

Asian Markets

The key benchmark equity indices in India ended in the green last week. During the Friday session too, the Nifty opened 40 points above its previous closing. Later in the day, it gained strength in the day to close with gains of nearly 0.9 per cent. Sensex closed at 39,467.31 and Nifty settled at 11,665.25. The broader market indices, however, saw mixed performance. BSE Small-Cap index closed 0.23 per cent below its previous close. BSE Mid-Cap index, however, added 0.55 per cent in Friday's session. Talking about the sectoral performance, BSE Bankex led from the front as it gained 4 per cent followed by BSE Telecom Index, which was up by 2.44 per cent. The sectoral indices that were under pressure on Friday were BSE Metal Index that declined the most as it slipped 0.27 per cent. Volatility index, India VIX, dropped by little more than 8 per cent last week to 18.35.

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With the market participants encouraged by the dovish stance of US Fed Chair Jerome Powell, US Equities, last week ended with a record high. In a major policy shift, the central bank of the US announced that it would not tolerate inflation higher than two per cent. This means that the rates are going to remain lower for a longer period than what was expected earlier. Besides, the economic momentum is also picking up in the US reflected by an increase in monthly personal spending that increased by 1.9% in July, the third straight month of growth.   The CBOE Volatility index was down by 6.17 to 22.96 on Friday, which further shows the market participant's bullish stance. At the closing bell, S&P 500 was up by 0.67 per cent followed by Nasdaq and the S&P 500.

The strengthening Euro against the Dollar kept the European equity market under pressure. The result of which, the European equity indices on Friday session ended in the red.

US Markets

Europe Markets

Commodity