10 August,2026 03:04 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
Market analysts remain cautiously optimistic about the stock market this week and the global crude oil prices amid geopolitical uncertainties, the domestic wholesale price index inflation (WPI), consumer price index inflation (CPI), earnings of corporates are all likely to steer investor sentiment.
In the last week, the 30-share BSE Sensex gained 0.52 per cent to settle at 78,499.17, while the Nifty advanced 0.77 per cent to end at 24,570.65.
"We remain constructive on the market in the near term, with the Nifty maintaining a positive structure as long as it holds above the 24,400-24,450 support zone. On the upside, 24,750-24,800 remains the immediate hurdle, and a decisive breakout above this zone could trigger a move towards 25,000-25,150. A breach of 24,400, however, could lead to some profit-taking towards 24,200. Hence, dips towards the support zone should be viewed as opportunities to accumulate quality stocks rather than as a trend reversal," Rajesh Palviya, Head of Research, Axis Direct said.
According to Vinod Nair, Head of Research, Geojit Investments, investors will closely monitor upcoming US labour market and inflation data for further clarity on the US Federal Reserve policy trajectory.
The US Federal Reserve's policy majorly influences foreign institutional investors (FIIs). The higher interest rate in US may tempt foreign institutional investors to park their funds over there rather than investing it in developing economies like India. Normally FIIs infuse massive capital in the equity market through their bulk buying and the withdrawals could lead to sharp corrections in a domestic market.
FIIs turned net buyers in July with inflows USD 2.5 billion. According to Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, FIIs net inflows during the last week (August 3 to August 7) was Rs 2,911 crore.
"Looking ahead, investors will closely monitor India's Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data, the ongoing Q1FY27 earnings season, US CPI and PPI inflation, the OPEC Monthly Oil Market Report, and China's industrial production and retail sales data for further cues on inflation, global growth and commodity prices," Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services said.
Investment in the primary market is expected to be healthy with five initial public offerings (IPO) opening for subscription this week. Molbio Diagnostics, Dhoot Transmission, Milky Mist Dairy Food, Shiprocket and Behari Lal Engineering with combined issue size of approximately Rs 7,479 crore are likely to generate interest among investors. Besides, Technocraft Ventures, LEAP India and Ardee Industries are scheduled to list on the stock exchanges, with a combined issue size of around Rs 3,158 crore.
"Sectorally, we remain positive on auto and auto ancillary , financials, chemicals , pharma and infrastructure, with domestic demand and improving earnings visibility providing support. Selective exposure to metals can also be considered if global commodity prices remain supportive. We would remain relatively cautious on IT, FMCG and other defensive pockets where near-term upside appears limited, while richly valued stocks should be approached selectively. Overall, the market strategy should remain 'buy on dips', with a preference for sectors showing strong price momentum, earnings visibility and institutional participation," Palviya said.
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