New Delhi: Amid rising inflation concerns, investors are closely monitoring the domestic CPI data for July, which is projected to show a significant increase due to rising food prices, says Vinod Nair, Head of Research at Geojit Financial Services.
The Indian market experienced bearishness during the week that focused on economic data as inflation concerns dented domestic sentiments., he said.
The week began with moderate gains, led by strong performances in the pharma and IT sectors. However, uncertainties surrounding economic data releases and the RBI’s policy announcement hindered substantial moves.
Inflation worries resurfaced as the RBI raised their CPI forecast by 30 bps to 5.4 per cent, increasing the potential for a prolonged rate-cut trajectory. Additionally, the RBI’s move to manage liquidity through the incremental CRR impacted banking sector sentiment, albeit with a limited effect as expected, he added.
Global markets faced volatility due to weak signals such as declining Chinese exports and the rating downgrade of US small and mid-sized banks. Despite lower-than-expected US CPI and better-than-anticipated UK GDP figures, global market sentiment remained subdued.
Rupak De, Senior Technical analyst at LKP Securities said in the short term, there’s a possibility that the index might decline towards the 19,300 level. On the upside, there’s a resistance level situated at 19,500.
–IANS
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