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Market is likely to take a breather after a roller-coaster week of surprise central bank announcements. Analysts expect a week of consolidation, with the broader markets moving in a range of one to two per cent.
At 8:30am, SGX Nifty fell 1 per cent to 5,978.
The rupee is expected to weaken this week owing to month-end dollar demand from importers and bond yields could rise further as the impact of the 25 basis points increase in the repo rate will linger.
On the sector front, analysts said the rally had been broad-based and even beaten down sectors had rallied significantly. For the week ahead, they said the automobile and banking sector will be watched, as a lot of short-covering activity is expected to push prices up.
In international markets, U.S. stocks fell on Friday as investors puzzled over the Fed’s decision to maintain its stimulus measures as they heard opposing viewpoints from top Fed officials.
The Dow Jones industrial average fell 1.19 percent, to 15,451, the S&P 500 lost 0.72 percent, to 1,710 and the Nasdaq Composite dropped 0.39 percent, to 3,775.
Asian markets got off to a lackluster start on Monday ahead of more testing data from China, while the euro had only the briefest of lifts from Chancellor Angela Merkel's landslide victory in Germany's general election.
MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction lower following a pullback on Wall Street.
Markets in South Korea returned from holiday to play catch-up with the U.S. Fed's surprise decision to keep its stimulus program intact. Shares dipped 0.3 percent. Japan's markets were closed for a holiday. Investors were wary ahead of readings on manufacturing activity for China and Europe.
Stocks to Watch
BPCL may be under pressure as South Korean major LG Chemicals has backed out of the Rs 5,000 crore petrochemicals project which was being planned in Kochi.
Ruchi Soya may see some price movement as the company plans to foray into the ready-to-cook segment soon.
State-owned steel maker SAIL may react to its plan to invest around Rs 800 crore to develop Bhilwara iron ore mine in Rajasthan.
