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Markets week ahead: Investors eye foreign flows, economic data

Markets week ahead: Investors eye foreign flows, economic data

Foreign flows would likely be key for Indian stocks after foreign institutional investors (FIIs) sold shares worth of Rs 59.8 crore on Thursday to snap a 32-day buying streak that had totalled Rs 23,884 crore.

Economic data will be also key, with July-September GDP data and fiscal deficit data for April-October on watch.

Traders also expect shares will turn volatile ahead of the expiry of November derivatives contracts on November 28.

Nestle India, Tech Mahindra Ltd and Yes Bank Ltd are due to be included in the MSCI India index after Tuesday's close.

Elections in Madhya Pradesh are slated to take place on Monday.

On Tuesday, Cairn India's board is likely to meet buyback proposal.

India's money supply data will be released on Wednesday.

On Thursday, November equity derivatives contracts are to expire.

GDP data for the quarter ended September will be released on Friday. Fiscal deficit data for the period between April and October will also be released on this day.

India's economic health will come into shape with July-September GDP data, while fiscal deficit should give further clues about the country's finances ahead of general elections next year.

Bond traders are also hoping for open market operations of bond purchases by the Reserve Bank of India (RBI) to cool down yields, after the apex bank bought bonds worth Rs 6,160 crore on November 18.

The yield on new 10-year benchmark bond, first issued at an auction on November 22, is expected to remain in an 8.70-8.80 per cent range.

The rupee is expected to trade in a narrow range of 62.80-63.50 levels against dollar, dealers said.

Copyright @ Thomson Reuters 2013