Tata Tech IPO, FII flows among 7 factors that will steer D-Street this week
global markets, easing US bond yields, and strong domestic institutional inflows suggest that the momentum in domestic equities is likely to continue this week.
However, it’s the primary market that’s going to steal the limelight, as IPOs worth Rs 7,300 crore will be up for sale, led by Tata Technologies.
Investors will be eagerly waiting for Tata Tech’s IPO, the first one from Tata Group in 20 years, and the fact that demand remains high, is reflected in the price as the stock is trading at a premium in the grey market.
Two other major IPOs to look out for are Mini Ratna company Indian Renewable Energy Development Agency, and Fedbank Financial Services.
As for the Nifty50, analysts expect the index to remain in a consolidation phase until it decisively breaches the 19,850 mark.
On Friday, the index ended 0.2% down at 19,731.80 points.
The options distribution of the index suggests 19,700-19,900 as the trading range for the coming week.
Global Cues
With the earnings as well as the festival season coming to an end, investors will switch to global markets to gauge the trajectory for domestic markets.
In the week gone by, benchmark indices in the US gained more than 1-2%, while major markets in Asia logged 1-3% gains.
Macroeconomic Indicators
Among macroeconomic data points to watch out for, the weekly retail sales and existing home sales for October will be released in the US on Tuesday.
On Tuesday, minutes of the US Federal Reserve’s meeting that took place earlier in November will also be released. Then weekly jobless claims in the US will be out on Wednesday, while the flash manufacturing PMI for November will be released in France, Germany, the Eurozone, the UK, and the US later in the week.
