NEW DELHI:  India’s equity markets are likely to take their cues from developments in the larger world, alongside how case numbers are trending as for as the pandemic is concerned. According to market analysts, with most key economic data having been released the previous week and suggesting a long road to recovery, Indian investors are likely to continue on a consolidative mode. 

Over the trading week ended September 4, Friday, the benchmark BSE Sensex index fell 2.81 per cent or 1,110 points, and the NSE Nifty dropped 2.7 per cent or 314 points. This followed data releases recording India’s first quarter GDP nearly 24 per cent lower than the same period of the previous year. The contraction is the worst in over five decades and the recovery is expected to be long-drawn out. 

“Going ahead, market is likely to remain in consolidative mode in the near term with more of sector/stock specific actions and intermittent profit-booking cannot be ruled out. Market would now be looking forward for positive signs of economic recovery and would track development around US stimulus announcement,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.

Investors would also watch developments with respect to India-China border issue, he pointed out. 
The situation in eastern Ladakh remains tense and Union Defence Minister Rajnath Singh had conveyed to his Chinese counterpart Wei Fenghe that China must strictly respect the Line of Actual Control (LAC) and not make attempts to unilaterally change its status quo.

MARKETS FALL

•  Over the trading week ended September 4, the BSE Sensex fell 2.81 per cent 
•  India’s first quarter GDP fell by nearly 24 per cent against the same period last year
•  NSE Nifty dropped 2.7 per cent or 314 points