Investors in S&P Global Services PMI to be out on Dec 05

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Investors in S&P Global Services PMI to be out on Dec 05

The coming week is going to be crucial as investors will be eyeing Services PMI to be out on December 05. The PMI of S&P Global India Services was up to 55.1 in October 2022 from September's six month low of 54.3. The traders would be waiting for the Reserve Bank of India RBI interest rate decision to be announced on December 07. There are hopes that the RBI will increase the repo rate. Traders will be looking for Foreign Exchange Reserves data scheduled to be released on December 09.

The Finance Ministry has called a meeting of chief executive officers CEOs of banks on December 5 to discuss ways to promote cross-border trade in the rupee instead of the US dollar. After the first phase of the Gujarat legislative assembly election, the second phase of the election to 93 seats will be held on December 5, with results for both phases due on December 8.

In November, FPIs turned strong buyers, with a focus on IT, autos, FMCG, capital goods, and telecom, said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. They were sellers in October, but they were buyers in November. There is no consistency in their sectoral selling strategy. The movement in the dollar index is the most important factor in the short run, and is the most important factor in the FPI strategy. When the dollar index goes up and is expected to go up, they sell. They buy when the dollar index declines and is expected to trend down. India will get its fair share of FPI money going forward. He said that the high valuation in India will be a deterrent.

On December 06, the US traders will first be looking at Factory Orders, S&P Global Composite PMI, S&P Global Services PMI and ISM Non-Manufacturing PMI on December 05, Exports Imports Data and Redbook on December 06, API Crude Oil Stock Change and EIA Crude Oil Stocks Change on December 08, Producer Price Index, Fed Quarterly Financial Accounts and Baker Hughes Oil Rig Count on December 06, and Exports Imports Imports on December

Market veteran Deepak Jasani, Head of Retail Research at HDFC Securities, said global stocks were cautious on Friday after recent gains as traders waited the monthly US jobs report for clues on the Federal Reserve's next policy steps and worries about economic growth in Europe. Markets are looking at fresh data points to decide the direction and gains are digested over the past few days. Realty stocks performed well in India due to a broker upgrade. Auto stocks came under profit after the monthly sales numbers. The Nifty gained 0.99% over the week. Nifty could face resistance in the band 18758 -- 18888, while the band 18462 -- 18529 could offer support in the near term, he said.

According to Sumit Pokharna, Vice President Fundamental Research at Kotak Securities Ltd., we are positive on equity markets but given the higher valuation, a further rise may be muted due to lower crude oil prices, expectation of inflation peaking and expectation of monetary tightening. There are multiple triggers like lower crude oil prices, lower fiscal deficit, higher government expenditure, pick-up in private capex, reformist budget and housing market revival, which can support markets in the medium to long term. Mid-cap and small-cap indices performed poorly in the recent rally, despite the fact that they underperformed large-cap indices. One can look at mid-sized companies with strong management pedigree, business moat, strong cash flow, but due to short term headwinds valuations have improved. At this juncture, investors should focus on a stock specific approach rather than focus on Nifty. There is a focus on quality companies in various sectors with strong growth potential and valuations. IT valuations have become more palatable. Pokharna said something.