Street signs: Nifty may see gains, debt funds see Rs 35K-cr outflow & more

Nifty may see more gains

The Nifty50 rose for the fourth consecutive week, up 2.5 per cent, in the longest winning streak since the week ended September 24 last year. The Nifty has formed a bullish candle and is also holding higher bottom series, which support a further uptrend, said analysts. The near-term uptrend status of Nifty remains intact and Friday's intraday weakness has not dampened the effort of bulls to sustain the highs. However, the index could consolidate between 18,050 and 18,375 levels due to an overstretched rally. On falls, the 18,120-18,130 band could provide support.

Debt funds see Rs 35,000-cr outflow 

The flows into the equity funds remained strong in 2021 as investors continued to invest despite the volatility in the markets. However, debt as a category saw net outflow of Rs 35,000 crore in 2021 as investors shied away from the category amid a fall in returns and as investors waited on the side lines, monitoring probable interest hikes by the Reserve Bank of India. CRISIL expects the central bank to continue to withdraw liquidity in the banking system in a calibrated manner as more certain signs of economic recovery become visible. “The upward movement in yields is expected to reduce the sheen of long-maturity debt funds, making short-maturity debt funds such as floating rate funds and roll-down strategy funds such as target maturity debt funds better bets for investors,” said CRISIL.

Building materials on investor radar 

Stocks of companies operating in the building material sector such as tiles, plywood, etc, are expected to gain on the back of the growth potential of the industry. Analysts said revival in post-pandemic housing demand, consolidation in the real estate market, spending on infrastructure, government thrust on housing through schemes, and low mortgage rates would benefit the industry. Moreover, work from home (WFH) due to the pandemic has resulted in many households spending on home improvement. Greenpanel Industries, Somany Ceramics, Century Plyboard and Greenply Industries are among stocks seen as beneficiaries.