Stock Market

Nifty may not revisit 6800 levels; Fed, BoJ action key: Pros

The Nifty and the Sensex posted the biggest weekly gains in absolute terms this week since May 2009. But the big question is — is this rally sustainable?

Jyotivardhan Jaipuria, founder and MD of Veda Investment Managers, says over the next two weeks India will perform in line with global markets. The performance of global markets in turn will depend on policy actions of central banks — Bank of Japan and US Federal Reserve.

Looking at the economy, he believes a very slow recovery will happen which will be more visible towards the end of the year and will be led by consumption.

Ashwani Gujral of believes the market may consolidate next week and everyone wants it to come down to 7150 levels. He does not see Nifty revisiting 6800 levels. “The overall trend is up and under-ownership will not allow the market to correct beyond a point,” he told CNBC-TV18.

However, Jaipuria has a word of caution for investors. He says, India continues to remain vulnerable to emerging markets outflows.

Meanwhile, Dipen Sheth, head-institutional research at HDFC Securities, says the rally is not driven by any changes on the ground, it is all about FII money. He advises investor to look for good bottom-up stories and stay invested and not gamble in the market.

Siddarth Bhamre, head equity derivatives at Angel Broking, too gave his views on the market.