Indian equity markets when they open on Tuesday are likely to take a shot at another landmark i.e Nifty trying to hit the 5500 levels. With low participation from the retail investors markets are denying an oppurtunity for an entry at lower levels. While FII inflows are subdued, Domestic Institutions have seen net outflows in the past 2-3 months.
Interest in next generation stocks like Jubilant FoodWorks Ltd. and Talwalkars Better shows the risk apetetite has inadverently increased.
Government yesterday announced exemption of PSUs to achieve at least 25% public holding within three years.
While booming Indian economy is primarily driven by domestic consumption growth, global revival too added fuel to the fire. US economic growth started decelerating and W-Street is expecting another stimulus. Indian growth might slow down once central bankers across the world start raising rates. RBI has hinted one more rate hike in September.
The trading day is most likely to start flat with Nifty ready to take a stab at 5500 levels