Markets to remain on positive note

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Mumbai: Overall, the move to take action by having the finance minister becoming the home minister and the prime minister also holding the finance minister’s post, is seen as being positive. Though there are no exceeding expectations as the elections are not far away, the traders reckon that having somebody whom they could relate with, was a better choice.

So, Indian bourses which witnessed huge volatility in the past few days are likely to remain on the positive note in the coming days. Dealers in the markets say, end of thriving three day terror operation in the city coupled with strong closing of US markets on Friday will have a positive impact on the market.

In the coming days, there are expectations that Reserve Bank of India (RBI) will take necessary action to infuse more liquidity in the domestic markets. The 60-hour terror attacks which begin in the financial capital of the country, Mumbai on Wednesday were ended of Saturday that killed over 183 people and injuring over 300 people.

An analyst from the leading broking house said, “I don’t expect any negative rally in the coming days. However after the recent terror attacks in the city, there might be short-term impact on the markets. But strong closing of US markets on Friday and some buying witnessed in domestic markets last week, we assume that volatility will prevail in the markets in coming days. The terror attacks are unlikely to prompt the panic selling, as valuations are already at low levels.”

But some players in the market feel that, terror attacks are likely to hit the sentiments of the investors and there is an urgent need of reforms in the security and economic space. On Friday last trading day of the previous week, 30-share Sensex of Bombay Stock Exchange (BSE) added 66 points or 0.7% to close the day at 9,092.72 points, while the broader S&P CNX Nifty of National Stock Exchange (NSE) gained 2.85 points or 0.1% to end the day at 2755.10 points.