The NSE Nifty 50 (India 50) could show weakness on Monday amid short-term fears of a falling rupee, analysts told Capital.com.
“Markets could see some consolidation after five weeks of successive bulls and that would be healthy,” said Ajit Mishra, vice president (Research) at Religare Broking.
Larsen & Toubro stock price and Reliance Industries stock price could see action on Monday, which in turn could influence the National Stock Exchange index.
“We have hardly seen any major declines in the index in the recent consolidation runs, however, much would depend on the performance of the US indices next week where we still see room for further upside.
We believe the 17,300-17,600 area would provide a cushion for Nifty next week, while a bounce towards the 17,850-18,100 area could attract profit bookings,” Mishra added.
With the gradual recovery of the markets, more and more companies are consolidating their initial public offering (IPO) plans. Over the next few weeks, the focus will be on how central banks would control inflation amid lingering fears of a global recession.
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RBI deposit and loan data due
Meanwhile, the Reserve Bank of India is about to release the data on deposit and loan value growth, and the central banks of China and South Korea will decide interest rates,” said Mitul Shah, head of research at Reliance Securities.
“The earnings season ended with strong revenue growth while margin pressure continued due to commodity inflation. We expect foreign institutional investors to remain net buyers because valuations are relatively reasonable,” Shah added.
Larsen and Toubro
Major engineering and construction conglomerate Larsen and Toubro (L&T) plans to invest up to $2.5 billion in building its green energy portfolio.
The investment would depend on market developments, while the company assessed prospects in green energy areas, including green hydrogen, battery storage and offshore wind, according to a report.
Five of the 10 most valuable companies together lost INR 307.37 billion ($3.83 billion) in market valuation last week, with Reliance Industries (RIL) being the most affected.
RIL’s valuation fell from INR 128.83 billion to INR 17,681.44 billion during the holiday-shortened week, according to a local report. While RIL, Tata Consultancy Services, ICICI Bank, State Bank of India and Bajaj Finance trailed the top 10, HDFC Bank, Infosys, Hindustan Unilever, HDFC and Life Insurance Corporation of India (LIC) were the winners.
Nice on Friday
On Friday, Nifty ended down 1.1% at 17,758.45, snapping an eight-day rally. Among sectors, the energy and capital goods indices rose the most, while the real estate, oil and gas, metals and banking indices fell the most.
“Volumes on the NSE were the highest since April 29, 2022, suggesting aggressive selling after a sustained rise. Asian equity markets were trading mixed on Friday following broadly positive signals from global markets overnight, while European markets were slightly higher,” said Deepak Jasani, head of retail research at HDFC Securities.