Just before the first Indian grand
prix, the markets had the exhilarating experience of revving engines and screeching
tyres as the Nifty raced ahead close to the 5400 mark. Now, it looks like the
world stocks are taking a breather. US equity benchmarks had a flat finish on
Friday while their European counterparts ended mixed. Italian shares slid after
a tepid auction pushed yields on Italian 10-year bonds back above 6%.
Asian markets are mixed this
morning while the Nifty futures trading in Singapore are pointing to a muted
start. Japanese shares are up slightly while the yen is down after the
government stepped in to check the currency’s advance.
The Indian indices may consolidate
after the Nifty nearly hit the 5,400 mark last week. Although the Nifty could
gradually rise to 5,600, it is likely to face resistance around 5450.
Corporate earnings will continue
to attract attention in the next couple of weeks. Key domestic data points to
watch out for in the near-term include auto sales, cement volumes,
manufacturing & services PMIs, IIP and inflation. Globally, investors will
have to contend with manufacturing & services PMIs, FOMC meet, G-20 summit
and US monthly jobs report.
