Markets week ahead: Bulls in control; stock specific movement to continue

Markets week ahead: Bulls in control; stock specific movement to continue

The stocks rally we saw over the past five days was inherited from the global trade setup and the buoyancy fueled by US elections.
Indian market has run up little more than the US market, as it has additionally benefitted from the weakness in the US dollar, as it led to more liquidity infusion in emerging markets. Going ahead, this rally is expected to halt some bit and there are chances that the market may consolidate a bit and stay healthy.
Optimism over quarterly earnings took a back seat as resurging coronavirus fears and weak global cues led Sensex and Nifty to close lower this week. Extending weakness for the third day, Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642 on Friday. On BSE, 1,464 stocks declined and 1,336 scrips advanced, 969 stocks declined on Nifty, with 889 stocks advancing.
Globally, rising coronavirus cases in the US and Europe are also a concern, with lockdowns having been recently introduced in the latter. This is denting global growth recovery expectations. Brexit talks are also continuing this week.
The ECB is hosting a forum where Fed Chair Jerome Powell, BoE’s Andrew Bailey and President Christine Lagarde will speak. What else is in store for markets next?
Meanwhile, latest BSE data showed that foreign portfolio investors remained net buyers in Indian markets in October so far, pumping in a net Rs Rs 17,749 crore amid better than expected quarterly results, and resumption of business activities.

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