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Below the Quote on Here is the coming week's market report from Arvinder Singh Nanda, Senior vice president at Master Capital Services Ltd

Benchmark indices logged a fourth week of gains, hitting new record highs. On a weekly basis, sectoral indices posted mixed performance with PSU banks gaining the most followed by Pharma and Energy, and the sector which fell the most was the Media sector.  

India’s Services PMI dragged down in Feb to 60.6 from 61.8 in Jan when it was at its six-month high due to a slowdown in new orders growth and output. But it continued to grow in Feb also amid positive demand trends supported sales and business activity. FADA reported auto sales growth of 13% YoY in Feb, PV retail exhibited a growth of an impressive 12% amid new product introduction and enhanced vehicle availability.

Foreign Institutional investors have sold around $2.4bn of Indian shares so far despite India’s strong corporate earnings and robust macroeconomic numbers. The major concern for FII’s could be valuations as the prices of shares have run up way ahead of fundamentals. Other factors could be the US 10-year bond yield, no US Fed rate cut expectations. The sectors where FIIs are cautious are Financial Services, telecom and construction. The sectors where FIIs have a bullish outlook are Healthcare, Consumer services, It and automobile. The FII trend reversal might depend on global economic conditions, sustained growth in India, US Fed policy clarity and robust domestic flow might attract foreign investment in India.  
 

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