The good show on Wednesday and Thursday helped the market close with a percent gain amid volatility in the week ended December 3, as investors kept a close watch on the new covid variant Omicron that leads to a lot of uncertainty in the global market
The fall in oil prices, good GDP growth in Q2FY22, and a further uptrend in manufacturing PMI also supported the equity, though rising expectations for faster Fed tapering limited upside.
The BSE Sensex rallied 589.31 points to 57,696.46, and the Nifty50 climbed 170.25 points to 17,196.70.
Now, talking about this week’s market overview, it is believed that volatility is likely to continue amid Omicron uncertainty and the RBI monetary policy meeting will be a key driver for benchmark indices going ahead, say analysts.
It will be an event-packed week for the markets, with RBI policy and several macroeconomic numbers scheduled to be announced, they added.
Check what analysts are saying:
Santosh Meena, Head of Research, Swastika Investmart Ltd
Volatility is likely to continue amid Omicron uncertainty, RBI credit policy, and macroeconomic numbers. There are lots of news flows on the Omicron variant which are causing volatility in the market while on the domestic front we will have the outcome of an important monetary policy of RBI that is scheduled on December 8.
"We will also have our IIP and inflation numbers this week however they will be released on Friday after market hours," said Meena.
Ajit Mishra, VP Research, Religare Broking s
Equity benchmarks on Friday tumbled after India reported its first case of the Omicron variant of the coronavirus.
"We expect volatility to remain high this week as well as we have some important data and events lined up. First, participants will be closely eyeing the monetary policy review meet the outcome on December 8. On the macroeconomic front, IIP number and CPI inflation are scheduled for December 10," said Mishra.
Yesha Shah, Head of Equity Research, Samco Securities
With a slew of events on the horizon, traders should brace themselves for an action-packed week. Market players will attempt to read between the lines of the RBI's monetary policy outcome.
During the last week, the BSE benchmark gained 589.31 points or 1.03 per cent.
Vinod Nair, Head of Research at Geojit Financial Services
RBI's monetary policy meeting which is scheduled to start this week will be a key market driver in the coming days as investors await MPC’s policy decision considering the uncertainty surrounding the new virus which persists in the global economy.
"Major domestic data points awaiting its release this week are November’s inflation data and October’s industrial & manufacturing production data," said Nair.
(With PTI Inputs)