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Markets are likely to start the week on a positive note on account of positive global cues. Through the day, the benchmark indices are likely to record new highs, continuing the uptrend. The Nifty is likely to surpass its all time high of 8,331.
Markets had gained nearly 4% in the week to October 31 to hit fresh record highs after encouraging data from the US allayed fears of a global growth slowdown, while the government’s move to ease foreign direct investment norms in construction sector boosted sentiments. Indian companies registering a rise in order inflows also signaled the revival of the investment cycle.
Stocks to Watch
Maruti Suzuki & M&M: The auto majors are likely to react to the disappointing October sales numbers. Maruti sales declined 1.1% while M&M slipped by 15.4%.
TVS Motors: The two-wheeler maker reported a rise in sale in October by 22%.
Infosys: Scraped plans of its proposed software development centre at Bengaluru
Airline stocks will be reacting to the positive development by way of a cut in ATF fuel price
PFC, Godrej Consumer, Karnataka Bank, Union Bank, TCI, Divis Laboratories and Suzlon will be reacting to its quarterly numbers reported post Friday’s trading hours.
Global Markets
Asian markets were largely in green with the Strait Times, Taiwan Weighted and Shanghai Composite up 0.1-0.5%. Meanwhile Hang Seng and Kospi were down 0.2% and 0.5% respectively.
In the US markets, The Dow and S&P 500 ended at record highs on Friday and other indexes posted strong gains for a second week after the Bank of Japan's surprise move to ramp up its stimulus program.
Major indexes also posted gains for the month, putting in a sharp recovery from their recent selloff that almost drove the S&P 500 into correction territory. The benchmark index is now up 8.4% from its October 15 low and up 9.2% for the year so far.
The Nasdaq finished at its highest since March 2000, while for the week the Dow rose 3.5%, its best percentage weekly gain since January 2013. The S&P 500 posted its best two-week gain since December 2011.
The Dow Jones industrial average rose 195.1 points, or 1.13%, to 17,390.52, a record close. The S&P 500 gained 23.4 points, or 1.17%, to 2,018.05, also a record finish.
