Ajit Mishra Vice President, Research, Religare Broking:
The Indian markets started the week on a flat note. Led by positive global cues, the Nifty index opened in the green and later touched highs of 11,147. However, in the last hour of trade, the index erased almost all the gains before closing flat at 11,054 (up 0.1%).
Amongst the broader market indices, BSE Midcap and Smallcap ended higher by 0.2% and 0.5% respectively. Most of the sectoral indices traded with a positive bias. Capital Goods and Consumer Durables were the top gainers in the range of 1.2%-1.6%, while Oil & Gas and Metals were the major losers.
While there are no key domestic triggers in the near-term, focus will now be on economic recovery and any stimulus/measures from the Indian government may boost sentiments. Moreover, positive global developments (stimulus announcement by Germany and interest rate reforms by China) have also infused positivity amongst the investors. However, we remain cautious on the markets in the near-term until there are visible signs of earnings recovery. Further, investors would keep a close watch on progress on US-China trade talks, movement of crude oil price and rupee/dollar.