Business

Market may trade in a range, but FIIs seen sold on India

NEW DELHI: Dalal Street is expected to see range-bound trading this week in the absence of any major triggers on the domestic or global front, analysts say know.

“Through market has moved up looks like it’s running out of steam as the indicators are still moving in a strong range,” according to broker ICICI Direct.

“In terms of valuation and from a risk-return perspective, the domestic market looks a bit vulnerable and is likely to see some near-term downside correction,” it added.

Despite the overall growth, the domestic market has underperformed compared to most of its peers globally, including China, which has grown by 19% in the same time period.

“Investors are cautious and the market is likely to see a side trade this week,” said Bonanza Portfolio vice president of research Avinash Gupta.

After negative signals globally, the market could open negative on Monday, however, it could recover later as capital inflows, the analysts added.

“Watching weak US and European markets, Dalal Street could open negative on Monday. However, FII remains bullish on India’s growth story and sustained capital flows should help the market bounce back,” said Alex Mathews, head of research at Geojit BNP Paribas.

Foreign institutional investors are active in the domestic market and last week itself collected “ 5,590 crore in the country share, bringing their total investment to date in 2010 at 51,185 crore according to Sebi data.

Mr. Mathews added: “Global parameters will be important to determine the direction of the domestic market.

On the domestic front, the faster pace of the monsoon is still a key factor for the market. The IIP figures for June, expected this week, will also be important and should be watched.

The domestic market recovered last week and both indices hit new 2010 highs as FII continued buying momentum. On a weekly basis, Sensex rose about 276 points, or 1.5%, to close at 18,143.99.

On Friday, Wall Street was also in the red due to sluggish jobs data and less-than-impressive July retail sales. The Dow Jones lost 0.20% and the S&P 500 closed 0.37% lower.

https://economictimes.indiatimes.com/market-may-trade-in-a-range-but-fiis-seen-sold-on-india/articleshow/6277705.cms

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