Market may see some correction, monsoon movement on watchhttps://indianexpress.com/article/business/market/market-may-see-some-correction-monsoon-movement-on-watch/

Market may see some correction, monsoon movement on watch

The market movement will also be influenced by services Purchasing Managers' Index (PMI) data due early this week.

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The market movement will also be influenced by services Purchasing Managers’ Index (PMI) data due early this week.

After racking up robust gains, the stock market may take a breather, with possibility of some correction in a holiday-shortened week ahead, say experts.

Investors will track the progress of monsoon for further cues. Markets are shut on Wednesday for Id-Ul-Fitr.

“Progress of monsoon and trends in global markets will dictate the trend in the shortened trading week ahead,” said Vijay Singhania, Founder-Director, Trade Smart Online.

“Post Brexit vote, investors’ focus now has shifted back to India as reforms momentum has gathered pace, monsoon is on track and commodity prices are expected to remain low. Now, investors are betting that these benefits will translate into higher profits for companies in the next few quarters,” he added.

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The market movement will also be influenced by services Purchasing Managers’ Index (PMI) data due early this week.

“After a stellar performance this week, we think that markets could take a breather this week and it is possible that we may see some correction happening as investors start coming out of the euphoria,” said Pankaj Sharma, Head of Equities, Equirus Securities.

“Going forward and for the next 4-6 weeks, Q1 results would be an important datapoint and we think that just like Q4, more stock-specific action is likely,” he added.

Indian market overcame jitters in the Brexit aftermath, snapping three weeks of extended losses, with the benchmark Sensex gaining 747.20 points to settle at 27,144.91, an 8-month high, while the Nifty added 239.75 points last week.

“Market had a hectic week with a lot of volatility and therefore, some amount of sideways to profit-booking is expected in the coming week. The monsoon session of Parliament will start from July 18, quarterly results season will start in a week. All these will set the tone of the market going forward,” said Jimeet Modi, CEO, SAMCO Securities.

“Market movement next week will mainly depend on FII trading activity and commodity price in the global market, especially how crude oil will behave,” said Rohit Gadia, Founder & CEO, CapitalVia Global Research.