Markets to see positive start on GDP data, coal block ruling eyed
Aug 31 2014 , New Delhi
Improved performance of mining, manufacturing and services sector pushed India's economic growth rate to two-and-half year high of 5.7% in the April-June quarter, a development which the Finance Ministry expects to continue for rest of the fiscal.
Market experts said that investors will look for current account deficit data due this week.
Focus will largely shift to the Supreme Court's decision on Monday on coal block allocation.
Besides, auto stocks would be in focus amid release of monthly sales figures from Monday, they said.
"At home, all eyes would be on the Supreme Court as it decides the fate of coal blocks - mass cancellation of which will have wide ramifications on the overall economy and growth could take a hit while a calibrated approach (imposing penalty where substantial investments have been made) could prove to be a market saviour.
"A choppy ride is likely ahead for equities, especially for the power and metals stocks," said Aman Chowdhary, co-founder and CEO, Cian Analytics.
The Supreme Court last week held that all coal block allocations made since 1993 till 2010 before pre-auction era during previous NDA and UPA regimes have been done in an illegal manner by an "ad-hoc and casual" approach "without application of mind".
Market participants said that trend in investment by overseas investors, global cues, movement of rupee against the dollar and monsoon will also be closely tracked for further cues.
"Now, we will see markets reacting to the GDP numbers on Monday and that might trigger the next directional move," said Jayant Manglik, President-retail distribution, Religare Securities Limited.
At the global front, European Central Bank (ECB) policy meeting on Thursday will be eyed on hopes of additional monetary stimulus.
Over the past week, the BSE benchmark Sensex gained 218.56 points to 26,638.11.