Markets
may consolidate around these levels with a negative bias. Investors
will watch out for the impact of currency movement on FIIs flows.
Also, IIP and inflation data will be released during the week which will
impact the direction of the market. Weakness in the rupee against the
dollar will add to volatility on the bourses. A weak rupee makes imports
costlier, stoking inflation concerns, thereby capping the RBI’s scope
to extend monetary easing and counter the slowest economic
growth
in a decade. Financials may be under focus ahead of RBI monetary
policy meet which is due early next week. Till then, indices may trade
in a broad range. The focus may shift to defensives. Global liquidity is
slowing down and also no respite is seen coming from the monetary side
indicating that broader choppiness and volatility would increase in the days ahead.
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