New Delhi: Stock markets are expected to be driven by global trends this week which may also see consolidation as the earnings season is largely over, analysts said.
The movement in the rupee and FII investment would also influence the investor sentiment, they suggested.
“The recent consolidation in the index is in-line with expectations but there’s no sign of exhaustion yet. With earnings season largely behind us, global cues will dictate the market trend ahead,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
“Markets seems to have factored in all the crucial events and the coming week may witness consolidation or short-term healthy dips in prices,” Nirali Shah, Head- Equity Research, Samco Securities said.
Vinod Nair, Head of Research at Geojit Financial Services also believes that the market can undergo some consolidation after the sharp gains made post the reformist Union Budget.
“The broad undercurrent of the market may remain constructive especially on the small and midcaps. But the sentiment of the global market will play an important role in deciding the short-term trend which is getting mixed due to weakening European market.”
During the last week, the BSE benchmark surged 812.67 points or 1.60 per cent.
PTI